Bitcoin bulls aim to break $31.5k resistance, eye $40k.
On Monday, Bitcoin, the biggest cryptocurrency in the world, faced a decline as traders exercised caution ahead of significant economic data releases and potential interest rate adjustments by central banks. Despite the weakening in price, Bitcoin managed to maintain its position near the $30,000 level.
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Looks like $BTC Is fighting to defend the 30K resistance… And I think it will break and go lower again for some time:) We are still in a phase where most alts don’t move up much:) I hold! Will only add more in the future:) What do you think? #bitcoin next move down or up? pic.twitter.com/SLaSstwkG2 — (@SebastianWols17) July 10, 2023
Moreover, the bullish US dollar, backed by robust US data and a higher probability of interest rate hikes, was another key factor that caps further gains in the BTC.
Bitcoin bulls aim to break $31.5k resistance, eye $40k. Crypto Markets Brace for Lower Close Amid Dollar Recovery and Chinese Economic Concerns
Bitcoin bulls aim to break $31.5k resistance, eye $40k. On Monday, the crypto markets were predicted to experience a decline, primarily due to the US dollar rebounding from its initial response to the poor job growth data.
Dollar recoups losses; weak China inflation data dents Aussie, yuan https://t.co/lsiEyKv2br pic.twitter.com/YU9utZNMlf — Reuters Africa (@ReutersAfrica) July 10, 2023
Recent inflation figures in China have raised concerns about potential economic challenges for the country. In June, consumer prices in China declined by 0.2%, resulting in an overall stagnant annual figure, the slowest since 2021. Additionally, producer prices have seen a 5.4% decline compared to the previous year, marking the most significant decrease in seven-and-a-half years. These figures suggest that Chinese authorities might have to consider implementing additional monetary and fiscal policy measures to safeguard against deflation.
These concerns about the health of the Chinese economy and potential deflationary pressures could contribute to a cautious sentiment among investors, which may impact the overall demand for cryptocurrencies like Bitcoin. Moreover, upcoming releases, including June inflation data for Europe and the United States, will be closely watched. The focus will primarily be on the US, with expectations that the June consumer price index (CPI) will show a 3.1% annual increase, the slowest since March 2021. This data follows the June jobs report, indicating that the Federal Reserve will resume raising interest rates later this month. These factors have led to cautiousness in the crypto markets, resulting in expectations of a lower close on Monday.
JPMorgan’s Managing Director Downplays Potential Impact of Spot Bitcoin ETF on Crypto Markets
According to JPMorgan's managing director, Nikolaos Panigirtzoglou, a spot Bitcoin exchange-traded fund (ETF) is unlikely to have a significant impact on the cryptocurrency market. This is due to the lack of interest in spot Bitcoin ETFs in Canada and Europe, which suggests that its impact in the United States may also be limited. As a result, this report may have a slightly negative effect on the crypto markets.
CRYPTO BREAKING NEWS Market Realism: JPMorgan Suggests SEC Bitcoin ETF Approval Alone Won’t Catalyze Crypto Market Revolution. JPMorgan posits that SEC approval of spot Bitcoin ETFs won’t significantly impact cryptocurrency markets. Spot Bitcoin ETFs, despite their advanta…… pic.twitter.com/UpMbobulAA — InnovatekMobile (@Neome_com) July 9, 2023
According to a recent report, the introduction of a spot Bitcoin ETF is unlikely to have a significant impact on the cryptocurrency market. It may, however, lead to reduced expectations and dampen investor enthusiasm, resulting in a mild downward pressure on BTC prices in the short term.
Currently, BTC is trading around the $30,000 mark, with active participation from bullish and bearish investors. The global cryptocurrency market cap has decreased to approximately $1.17 trillion, with a drop of nearly 1% in the last 24 hours. The current Bitcoin price is $30,140, and the 24-hour trading volume is $8,855,066,632. Over the previous 24 hours, Bitcoin has declined by 0.47%.
On Monday, Bitcoin exhibited a sideways trajectory, with its price range confined between the upper barrier of $30,500 and the lower limit of $30,000. Detailed scrutiny of the 4-hour timeframe revealed a notable hindrance encountered by Bitcoin near the $30,500 threshold. This hindrance is substantiated by the presence of a double top pattern and the 50-day exponential moving average.
On the other hand, the $30,000 level emerged as a robust support level, impeding further downward momentum in Bitcoin’s price. Nonetheless, breaching this support level could potentially trigger a descent towards the $29,700 mark. In the event of sustained bearish activity, the price may find additional support at the subsequent level of $29,250, and possibly even descend further towards $29,000.
Conversely, if Bitcoin successfully surges beyond the resistance at $30,500, it holds the capacity to drive the price towards the thresholds of $31,000 or even $31,350.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.