Bitcoin (BTC) rose and fell last week, although it did not show significant weakness. However, against the backdrop of the sharp decline in the US dollar and the sharp rise in US stocks, this trend appears somewhat weak
Bitcoin (BTC) rose and fell last week, although it did not show significant weakness. However, against the backdrop of the sharp decline in the US dollar and the sharp rise in US stocks, this trend appears somewhat weak. Technically, Bitcoin maintains a range of fluctuations between 30000 and 31500, and in the short term, it continues to pay attention to the gains and losses at the bottom 30000 level of the range.
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The US dollar has plummeted and risk appetite is strong, but the upward trend of Bitcoin (BTC) is weak
The macro financial environment last week was very favorable for Bitcoin (BTC), because the dollar continued to plummet due to the impact of inflation data, while market risk appetite was generally strong. However, some adverse news from the Cryptocurrency industry may limit the strength of Bitcoin.
The CPI and PPI data released by the United States last week indicate that the rate of inflation cooling in the United States has exceeded market expectations, which may limit the space for the Federal Reserve to further tighten policies in the future and the time to maintain a hawkish stance.
The weaker than expected inflation data led to the continuation of the decline of the US dollar caused by the previous non farm data, and the decline was significantly intensified. The U.S. Dollar Index fell 2.26% last week, the largest weekly decline of the US dollar since November last year. However, Bitcoin turned a blind eye to this benefit and reacted mildly.
Last week's enthusiastic risk appetite did not provide the necessary boost to Bitcoin (BTC). Unlike the rebound in US stocks after non farm data, weak inflation data such as US CPI and PPI have provided a strong stimulus for US stocks, with the S&P 500 index rising 2.42% last week.
In addition, according to media reports, the U.S. Securities and Exchange Commission has officially confirmed that it has received applications for Bitcoin ETFs from financial institutions such as BlackRock. This news once boosted the price of Bitcoin in June, but this time the price of Bitcoin was not excited.
The price of Bitcoin (BTC) remained almost unchanged last week, and the lukewarm and tepid situation under favorable conditions raises concerns about its weak trend and the risk of turning to weakness.
Some bad news reports may bring downward pressure. The media quoted sources saying that King'an has laid off more than 1000 employees in recent weeks, and the continuing layoffs may eventually reduce the number of employees of the largest Cryptocurrency company by more than one-third. Although the CEO of Coin Security said that the report exaggerated the truth, it reflected the fact that the Cryptocurrency industry was tending to depression.
Technical analysis of Bitcoin (BTC) trend: short-term focus on whether to maintain support at the bottom of the range
The daily chart shows that Bitcoin (BTC) continues to fluctuate in the range of 30000 to 31500, and the current price trading is near the bottom of the range of 30000. Therefore, it is necessary to pay attention to the gains and losses of support at the bottom of the range in the short term.
If Bitcoin prices hold the 30000 mark, they may rebound and point back towards the top 31500, breaking through this resistance and 32000 will mean the end of consolidation and opening the door to upward growth.
However, if Bitcoin effectively falls below the 30000 level of support, there will be further downward space. Below, support will focus on levels such as 29000 and 28000.
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