Bitcoin witnessed the bullish momentum that pushed its price above $31,500 today. However, that momentum faded as concerns emerged about potential rate hikes. Afterwards, BTC, which started to decline, briefly saw below $ 30,000. In the midst of these developments, an analyst familiar with BTC collapses shared his pessimistic scenario.
Bitcoin legend insists on bearish outlook!
The cryptocurrency market continues to follow a volatile course. The crypto, which gained strong momentum with BlackRock’s spot Bitcoin ETF application, lost this momentum today. After the strong employment data from the USA, it started to lose altitude. In this environment, the analyst named Crypto Capo, who predicted the collapses of BTC accurately, stated that $ 29,500 is the critical level for the continuation of the decline.
According to the analyst, over $30,000 is currently selling in BTC. Capo states that especially whales sell for $31,000. For the analyst’s accurate predictions cryptocoin.comCheck out this article. In this context, he states that whales add and sell too much. From this point of view, the analyst points to the following levels:
A definitive break of $29,500 is needed for initial bearish confirmation. However, the main bearish confirmation would be a clean break below $25,000. My main target for Bitcoin remains $12,000.
What factors influenced the BTC price today?
The bullish momentum pushed Bitcoin price above $31,500 on July 6. However, it faded as concerns emerged about potential rate hikes. The drop in Bitcoin price briefly plunged BTC below $30,000. Alongside the renewed concerns, traders are worried that Bitcoin miners sending BTC to exchanges could signal an impending selloff.
The Fed stopped raising interest rates on June 14. However, Fed Chairman Jerome Powell seems determined to restart rate hikes to keep inflation down. After Powell’s speech to the Federal Open Market Committee (FOMC) on June 14, the market began to believe with confidence that the Fed would begin raising interest rates again. CME’s FedWatch tool shows that the market believes these increases will occur at the next FOMC meeting on July 26. As of July 6, the probability of a 25 basis point rate hike is 92.4%.
So far, crypto prices have been highly correlated with the Dow and S&P 500. Most major banks still expect the US to experience a sharp slowdown at some point in 2023. Investor sentiment on the current state of the economy remains low, according to an analysis of more than 1,000 data points by a US bank.
Regulatory pressure on crypto exchanges continues
Despite the recent institutional interest in Bitcoin, the actions of US regulators are still met with uncertainty. On June 5 and 6, the US Securities and Exchange Commission (SEC) filed suit against Binance and Coinbase, two of the largest centralized exchanges for cryptocurrencies. This action caused Binance US’s market share to drop from 22% to less than 1%.
While the SEC has previously stated that Bitcoin is not a security, some market analysts are considering whether the current actions are the resumption of Operation Chokepoint 2.0, which aims to restrict access to all digital currencies. There may still be an ongoing lawsuit against Coinbase. But ETFs like BlackRock and Valkyrie list Coinbase as a custodian. While some commentators are excited about the possibility of Bitcoin ETFs, not all analysts agree that this structure is healthy for Bitcoin price.
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