Our weekly feature: our experts analyze the market situation and tell us how it may change in the short term for Bitcoin
The week from July 17 to July 23 passed without any special events. The price of Bitcoin (BTC) remained in a narrow range between $29,500 and $30,420 and was in a state of stability. However, the prolonged consolidation began to cause concern among investors. And who expected the price to continue rising after Ripple Labs' first court victory against the US Securities and Exchange Commission (SEC).
In the absence of clear signals about the direction of the next price move. Many investors decided to close long positions, not realizing that they helped sellers lower the price.
The cryptocurrency market is in a state of uncertainty and requires additional triggers or events to break out of the current sideways trend.
Bitcoin's price is holding above the $29,500 support level for now. Buyers are trying to defend this level, but so far without success. They are not able to overcome the resistance at $31,500. The lack of positive news also affects the situation.
Important events
During the week volatility may increase because of the meetings of the European Central Bank (ECB) and the Federal Reserve System (Fed). According to CME Group, there is a 99.2% chance of an interest rate hike. The market has already factored this into prices. After the announcement of the decision, traders' attention will immediately shift to the press conference of Fed Chairman Jerome Powell. They hope that the Fed will move closer to finalizing the interest rate hike due to the slowdown in US inflation.
Judging by the cycles, the buyers' time is coming to an end. They have failed to take advantage of favorable times and positive factors. From July 22 to September, sellers will dominate the market. BitRiver estimates that if the support level doesn't hold, sellers will quickly move the price to $28,350. A break of this level will lead to a cascade of stop orders being executed and a further decline in the bitcoin price.
Buyers can prolong the bullish trend. And if within three days (until July 25) they will manage to fix above the level of $31,500.In this case, the bullish trend may continue until August 8. However, the probability of such a scenario is less than 10%. Uncertainty also arises from the statements of the head of the SEC regarding Ripple. And consideration of applications to open spot bitcoin-ETFs. The regulator is studying the judge's opinion and has not yet made final decisions regarding the introduction of additional rules for cryptocurrencies.
The bitcoin market is in a state of sideways movement in a narrow range.
The lack of clear signals about the direction of the next price movement is causing concern among investors. Volatility may increase due to the meetings of central banks uncertainty about the statements of the head of the SEC regarding Ripple. Buyers have not yet been able to overcome the resistance at $31,500, and their time is coming to an end. If the support level doesn't hold, sellers could quickly move the price to $28,350. $BTC