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