Bitcoin’s price has remained stable at the $60,000 resistance level in Tuesday’s trading session, signaling robust investor interest. Over the past week, Bitcoin ETFs have experienced net inflows of approximately $13 million, indicating sustained demand among institutional investors. These inflows are likely to contribute to Bitcoin’s price gains in the medium to long term.

Despite hitting an annual low for the third consecutive week, Bitcoin’s price stability indicates a positive trend for cryptocurrency markets, especially with the recent government transfer to Coinbase Prime totaling around $418 million. These transactions clearly demonstrate institutional interest in Bitcoin, even amidst market fluctuations.

The United States is also displaying signs of economic stability, with the expectation of a recession dropping to 20% following positive retail sales and unemployment data. Markets now have more confidence that the U.S. Federal Reserve will reduce interest rates by 0.25% at its next meeting, a move that could potentially benefit Bitcoin traders.

However, there is a risk that a rate cut could signal a looming recession, resulting in a downward correction in Bitcoin’s price. The outcome of the rate cut in July 2019 serves as a cautionary tale, with Bitcoin initially rising by 20% before ending the year down 35% from its peak.

The global political and economic landscape remains uncertain, with recession expectations by the end of 2025 standing at 45%. This uncertainty highlights the challenges facing Bitcoin’s price performance in the near future.

From a technical standpoint, Bitcoin’s price still encounters resistance, struggling to overcome key levels. Although recent data on Bitcoin mining activity indicates a reduction in selling pressure, the price remains consolidated. Bitcoin’s price continues to fluctuate within a range of $57,115 and $62,066, with potential resistance at the 100-day exponential moving average around $62,226.

Failure to surpass and sustain above $62,066 could lead to a decline towards $57,115, followed by a potential 19% drop to revisit the daily support level at $49,917. However, if Bitcoin manages to close above $62,066, a rally towards the August 2 high of $69,596 could be likely, followed by an additional 6% increase to test the weekly resistance at $69,648.

In summary, Bitcoin’s price trajectory remains uncertain, with the potential for upward gains if it holds above the $60,000 level. The next rally could see all-time highs and offer new peaks in the medium to long term, provided key resistance levels are overcome. (Source: Londonlovesbusiness.com)

Related posts:

Institutional Investment in Bitcoin is Easing as Market Cautiousness Grows; Minting Ratio Decreases to $1.4 Billion The Federal Reserve’s Monetary Policy and its Impact on the Global Economy The Power of Lower Interest Rates in Driving DeFi Growth: Insights from HashKey CEO Bitcoin Investment Advisers on the Rise, Hedge Fund Holdings Decline, Says Coinbase