Following the release of the minutes from the June meeting of the Federal Open Market Committee (FOMC), the price of Bitcoin has seen a significant increase in selling pressure. During the meeting, officials agreed to keep interest rates current, though a few suggested a 25-basis-point increase. Looking ahead to 2023, most of the committee anticipates further rate hikes.
As a result of this news, the largest cryptocurrency, Bitcoin, has seen a decline of 1.1% and is currently trading above $30,700 on Thursday. Similarly, the second-largest cryptocurrency, Ethereum, has experienced a loss of 1.4% in the last 24 hours, with its price at $1,913. It is worth noting that this selling pressure is not limited to BTC and ETH, as the total crypto market cap has dipped by 1.2% to $1.23 trillion.
Despite the slight price drop, Bitcoin remains above the immediate support level of $30,500, and stronger support is expected at $30,000. In June, BTC made a significant move by reclaiming resistance at $31,000, supported by several filings from companies seeking to offer a spot Bitcoin ETF.
This price analysis blog will continue to provide further updates and analysis on the current market situation. Stay tuned for more information.
Investors will closely analyze the recently released FOMC minutes, given that “almost all participants noted in their economic projections that they judged that additional increases in the target federal funds rate during 2023 would be appropriate.”
Furthermore, Bitcoin’s ability to sustain its position above the key level of $30,000 remains crucial. A confirmed drop below this level would have significant consequences. It’s worth noting that market sentiment has been on the rise in recent weeks, largely due to increased interest from institutional investors such as Blackrock and Fidelity Investments.
Disrupting this positive market sentiment could trigger a sell-off, causing discontent among retail investors who tend to follow trends.
Considering the technical indicators, there is a strong possibility of the Moving Average Convergence Divergence (MACD) indicator signaling a sell-off in the upcoming sessions, potentially before the weekend. This would occur if the MACD line (blue) crosses above the signal line (red). Furthermore, a double top pattern on the daily chart could increase the likelihood of Bitcoin retracing below the $30,000 level.
Another bearish signal arises in the volume of funds entering and exiting the BTC markets. The notable decline below the chart indicates that the outflow volume significantly surpasses the inflow volume. In other words, there is more selling volume compared to the current buying volume. This situation will likely keep Bitcoin’s price under pressure and make it difficult to overcome resistance at the $31,000 level.
Blackrock CEO, Larry Fink, expressed openness towards the spot BTC ETF filing with the SEC in June, stating that the asset manager is willing to collaborate with regulators to address any arising issues. Fink emphasized the goal of democratizing and reducing costs for investors through cryptocurrency. While referring to Bitcoin as an international asset and expressing support for digital products, Fink’s positive comments coincided with a slip in Bitcoin’s price, testing support at $30,500.
This decline was influenced by the FOMC minutes, which hinted at the potential for a ‘mild’ recession in the US. Stay informed and monitor market developments for potential opportunities.