The price of Bitcoin began the year at around $6,700, and over the first six months of 2017, has risen over 20% to a current price of ~$16,000. As Bitcoin’s price rose, so did the number of people interested in buying it. As a result, the price rose even more, and as more people bought it, more people wanted to sell it. As a result, the price rose even more, and as more people sold it, even more people wanted to buy it. As a result, the price rose even more, and as more people bought it, more people wanted to sell it.
The bulls are in control, and the bulls are cashing in. After a spell of consolidation, Bitcoin has surged by over $100 over the past two weeks, and is now trading close to $5,800 as of press time. The market has now broken above the 50-day EMA (one of its key technical divergence indicators), and is rapidly approaching its next major resistance level at $6,000. As with any breakout, however, there’s no guarantee that prices will continue on their path upwards.
Bitcoin’s price has been in a consolidation phase since mid-May, with price tracking the 50-day moving average. The break of this line would signal the start of a new bullish move.. Read more about ethereum price and let us know what you think.
Bitcoin (BTC) prices are getting closer to testing its 50-day exponential moving average ($35,115) as resistance after a four-day winning run.
During the May 2023 sell-off, the wave, which was important in reinforcing Bitcoin’s bullish bias as support throughout 2023, switched to become resistance. It did so by preventing the cryptocurrency from repeatedly extending its upward rebound movements.
In mid-May, for example, Bitcoin fell from $56,900 to $30,000, prompting bulls to purchase the dip. As a consequence, the cryptocurrency regained control of the $40,000 mark, although its bullish impetus petered out around the 50-day EMA. After May’s retracement effort, the situation repeated itself many times, as seen in the chart below.
The 50-day exponential moving average (EMA) of Bitcoin acts as resistance. TradingView.com is the source for this information.
A 2023 fractal was used by Rekt Capital, a well-known cryptocurrency analyst, to predict possible outcomes from the current Bitcoin price movement.
When the BTC/USD pair was trading below $10,000 in October of last year, the trader noticed that Bitcoin price challenged the 50-day EMA as resistance. BTC/USD ultimately set a record high around $65,000 after breaking the wave to the upside.
Fractals of the Bitcoin 50-day EMA. TradingView.com/Rekt Capital/Rekt Capital/Rekt Capital/Rekt Capital/Rekt Capital
“This [was] when BTC created a nearly similar fractal of Bitcoin’s current price movement,” the profile said, implying that the fractal may repeat itself when Bitcoin hits the same resistance level nine months later.
After a bright week, Bitcoin closed in to recover the 50-day EMA.
The benchmark cryptocurrency was up more than 8% at the conclusion of the seven-day period. The bulk of its gains occurred after The B-Word conference, which included Elon Musk, CEO of Tesla, Jack Dorsey, CEO of Twitter, and Cathie Wood, founder of Ark Invest. The CEOs took turns praising Bitcoin technology and sharing their predictions for the future.
Musk disclosed that his own rocket firm, SpaceX, has Bitcoin. Musk’s remarks on cryptocurrencies are infamous for influencing markets. Tesla’s Bitcoin payment option will be reinstated after its miners switched to more sustainable energy sources to power its blockchain, he said.
The dollar, stocks, and the Federal Reserve
A turbulent US dollar index and a rising Wall Street seemed to have fueled risk-on movements, which Bitcoin appeared to have benefited from.
Bitcoin in comparison to the major Wall Street indices and the US dollar index. TradingView.com is the source for this information.
The week ahead looks to be jam-packed with high-profile data and policy announcements.
The Consumer Confidence Index for July will be released by the United States Conference Board on Tuesday. A preliminary Consumer Confidence Index data from the University of Michigan also indicates a drop in consumer sentiment. Fears of a significant increase in inflation are also expressed in the study.
Inflationary pressures have recently increased the dollar’s attractiveness among investors. Despite the cryptocurrency’s famous safe-haven concept, this has dampened Bitcoin’s temporary optimistic outlook.
The Federal Open Market Committee (FOMC) will announce its interest rate decision and release its monetary policy statement on Wednesday.
In congressional testimony earlier this month, Federal Reserve Chairman Jerome Powell said that the central bank is still planning to reduce its $120 billion per month bond-buying program. He said that a decision to reduce the Fed’s asset purchases would be made only if the labor market improved significantly.
Officials from the United States’ central bank, on the other hand, want to debate whether they may begin tapering by the end of the year. In further detail, a hawkish change in Fed policy in June contributed to Bitcoin prices falling and the currency rising. As a result, Bitcoin bulls are likely to be wary about the outcome of the FOMC meeting.
Related: 7 steps to greater fiscal stimulus and higher BTC prices from a Bitcoin bull
On the other hand, given the growing economic concerns caused by the fast-spreading Delta version of the Covid-19, if the Fed chooses to sleep on the tapering discussion, it may hurt the dollar’s attractiveness and, as a result, provide Bitcoin a push to the upside.
Thinking about thinking? Instead of thinking about tapering the Fed, running $120B in monthly QE, has actually expanded its balance sheet by $162B during just the first 3 weeks in July. Record high balance sheet = record high S&P 500. Every month since November. Like clockwork. pic.twitter.com/UIhzWCnid5
July 24, 2023 — Sven Henrich (@NorthmanTrader)
The US Bureau of Economic Analysis will issue its second-quarter gross domestic product growth estimate on Thursday. Economists anticipate it to rise from 6.4 percent to 7.9 percent year over year.
Finally, on Friday, the Personal Consumption Expenditures (PCE), the Federal Reserve’s favored indicator for measuring inflation, will be released; it is anticipated to increase 3.7 percent from 3.4 percent in June.
The author’s thoughts and opinions are entirely his or her own and do not necessarily represent those of Cointelegraph.com. Every investing and trading choice has risk, so do your homework before making a decision.
This week, the Bitcoin price has come face to face with a 50-day moving average thanks to a bit of weak newsflow. This has kickstarted the price downward from its recovery over the past few weeks, but I think it’s way too early to call a trend reversal. The price is not typically attracted to support levels, so there is no guarantee this move will be short-lived.. Read more about dogecoin and let us know what you think.
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