Bitcoin
Bitcoin Price is on a Rollercoaster Ride After a Brief $30,000 Retest
Bitcoin price was trading higher on Wednesday, hitting an intraday high of $30,000 before pulling back. At press time, the digital asset was trading slightly lower at $29,477. BTC’s total market cap has jumped by more than 2% over the last day to $572 billion, with the total volume of the asset traded over the same period up by 49.59%.
Fundamentals
Bitcoin price has been in consolidation mode for the past few days amid immense market pressure and macroeconomic headwinds. Global uncertainty, market volatility, and economic concerns in the United States and the United Kingdom have been weighing on the broader crypto market, pushing the Bitcoin price lower, below the key resistance level of $31,000.
With interest rate hikes by global central banks and persistent inflation, the global crypto market is likely to be under pressure in the coming days. Last week, the US Federal Reserve announced a quarter percentage point increase in its interest rate in its July meeting, taking benchmark borrowing costs to their highest level in more than two decades.
The European Central Bank also raised its interest rates last week, hitting its highest level in 15 years. The Bank of England (BoE) is also expected to hike its funds rate at the end of its meeting on Thursday. An environment of higher interest rates tends to be bearish for risk assets such as stocks and particularly, cryptocurrencies.
A look at the Crypto Fear and Greed Index, which measures the key emotions driving the cryptocurrency market, shows a decline in risk appetite by investors. The index has been hovering around a neutral level of 53, down from the Greed level of 64 seen a few weeks ago. A neutral reading shows that investors are in conservation mode and could be prompted to shift to traditional financial investments with lesser risks.
Bitcoin Price Technical Analysis
The daily chart shows that the Bitcoin price has been trading sideways for the past few days amid global economic uncertainty and market volatility. The digital currency briefly retested the key important level of $30,000 on Wednesday before pulling back. Bitcoin, the largest cryptocurrency by market cap, slipped to its lowest level since June 21, 2023, before a minor upward price reversal.
Bitcoin is trading slightly above the 50-day and 200-day exponential moving averages but remains below the 50-day simple moving averages. Its Relative Strength Index (RSI) has dropped below the neutral level, signaling an increase in selling pressure. The Moving Average Convergence Divergence (MACD) indicator, as well as the Momentum indicator, is pointing to more downside. The Bollinger Bands have also narrowed, showing a decline in volatility.
Therefore, the Bitcoin price is likely to continue moving sideways in the ensuing sessions as it struggles to find direction. A move above the bullish support at $29,588.85 will pave the way for further gains as bulls eye the key resistance level of $30,000. However, we cannot rule out a slip to the support level at $28,859.80 which will lead to further losses.
BTC Price Chart
Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
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