Everyone is eagerly anticipating an answer to the question, “Is it over?” Has the recent decline in Bitcoin truly come to an end? The BTC chart may provide some insights. There are several encouraging indicators suggesting potential for growth. For instance, sales in Germany are almost complete, interest rate hikes have ceased, and inflation continues to decrease. Additionally, growth in employment has halted. So, is a crypto resurgence on the horizon?
Current State of Cryptocurrencies
On July 8, BTC started a new upward attempt, reaching the $60,000 mark by July 10. However, it has yet to surpass this level. Continued demand at lower levels is a positive sign. Since July 5, investors in the ETF channel have poured in $650 million, indicating increased risk tolerance as US stocks rise.
Germany is expected to account for another 6,000 BTC soon, raising questions about the impact of MTGOX returns on the market. Nonetheless, the rapid pace of feared sales is easing, as Germany still holds approximately 10,000 BTC. According to Glassnode data, the fear and greed index hit a low of 27 on January 23, hinting that the market may have found a real bottom after prolonged declines.
If upcoming inflation data aligns with or falls below expectations, the crypto market could experience relief, with the Fed seeing it as a move towards its 2% inflation target. Conversely, high inflation could negate optimism from revised downward employment data, reinforcing the narrative that rate cuts are not imminent this year.
Bitcoin Price Prediction
The price jump on July 8 underscores the strong defense of the support area between $53,485 and $56,552. The 20-day exponential moving average is at $60,217, and if reclaimed, significant movement in altcoins could follow. However, the recent 24-hour attempt was reversed, with sales around $59,400 causing a $2,000 price drop.
At the time of writing, BTC was hovering near $57,500. Bears aim to push the price below the defended support area if inflation data exceeds expectations or MTGOX FUD gains attention, potentially causing a drop to $50,000.
Valuable Insights for Investors
– Monitor inflation data closely, as it could significantly impact crypto market trends.
– Pay attention to ETF channel investments, which show increased risk tolerance among investors.
– Keep an eye on the fear and greed index for potential market bottom indicators.
– Watch for developments concerning Germany’s BTC holdings and MTGOX returns.
– Track EMA20 and 50-day simple moving average levels for potential price movement triggers.
If EMA20 is surpassed, there could be an attempt towards the 50-day simple moving average at $64,970. This move might shift the focus to raising the ATH target of $73,777 even higher.
