Declining investor sentiment
Investor sentiment in the cryptocurrency market soured last week, with Bitcoin (BTC) briefly dipping to the $65,000 level, causing broader market instability. The Federal Reserve’s projection of only one rate cut this year, fewer than previously expected, dampened investor hopes for looser monetary policy despite the positive inflation data. Political uncertainty in Europe, particularly the snap election in France, further strengthened the U.S. dollar, which rose to its highest level in over a month, adding additional downward pressure on Bitcoin.
During periods of dollar strength, investors tend to prefer dollar-denominated assets that offer higher yields or lower volatility, making them more attractive than riskier assets like Bitcoin and tech stocks. Selling pressure from Bitcoin miners and profit-taking by long-term holders around the $70K level contributed to declines, with other major cryptos like Ethereum (ETH), Solana (SOL), Avalanche (AVAX), Cardano (ADA), and Near (NEAR) seeing losses of 10% to 20% over the past seven days.
Coinglass data indicates nearly $214.2 million in leveraged derivatives trading positions were liquidated in the last 24 hours, with total liquidations for the week surpassing $900 million. Bitcoin investor Murad Mahmudov outlined two scenarios for Bitcoin in the coming weeks: If Bitcoin holds above $60,000, the bull market may continue in line with the typical four-year cycle, but if it breaks below $60,000, a decline could follow. Popular trader Peter Brandt echoed this sentiment, suggesting that a drop below $60,000 could send Bitcoin down to $48,000. Meanwhile, market analyst Bob Loukas predicted a consolidation phase similar to last summer, emphasizing that patience may be necessary for stabilization.
Trump’s promise to end Biden’s ‘war on crypto’
Blockchain analytics firm Santiment has noted increased fear among investors following Bitcoin’s recent drop to $65,000. The price’s direction will largely depend on macroeconomic factors and investor sentiment shifts. However, some positive sentiment emerged when former U.S. President Donald Trump promised to end what he called President Joe Biden’s “war on crypto” if re-elected.
Trump made this promise in a special address in West Palm Beach, Florida, on June 14, which analysts believe signals his intention to create a crypto-friendly environment in the U.S., particularly in Florida, which is known for its crypto-supportive stance. Trump has previously criticized Biden’s crypto policies, and his support for Bitcoin miners, which he emphasized during a meeting with miners at Mar-a-Lago on June 11, highlights his pro-crypto position. This endorsement is especially important given the scrutiny the industry faces regarding environmental concerns. By supporting Bitcoin miners, Trump is appealing to a broad base of voters while integrating digital assets into his campaign rhetoric.
Bitcoin (BTC) technical analysis
Bitcoin (BTC) has fallen from $71,974 to $65,000 since June 07, 2024, and is currently priced at $66,516. Bitcoin may struggle to maintain levels above $65,000 in the coming days, and a break below this support could signal a potential drop toward $60,000.
Ključne razine podrške i otpora za Bitcoin (BTC)
Based on the January 2024 chart, key support and resistance levels can help traders gauge potential price movements. Bitcoin remains under pressure, but if it surpasses $70,000, the next target could be $75,000. A strong support level exists at $60,000; breaking below this would trigger a “SELL” signal, with the next target at $55,000. If the price drops below $55,000, the next support could be around $50,000.
Factors supporting a rise in Bitcoin (BTC) price
Traders and analysts often monitor crypto whale activity, as significant transactions from whales can signal bullish trends and potentially drive Bitcoin’s price higher. Positive sentiment has emerged after Donald Trump’s promise to end the “war on crypto” and his support for Bitcoin miners, which could stabilize the energy grid, a key consideration given the industry’s environmental concerns.
Indicators pointing to a decline for Bitcoin (BTC)
Bitcoin remains susceptible to market volatility, with fluctuations expected to continue despite stabilization efforts. A crucial support level at $60,000 exists, and a breach could push Bitcoin down to $55,000. Additionally, uncertainty in the macroeconomic environment, with central banks maintaining high interest rates, could weigh on riskier assets like Bitcoin.
Uvidi analitičara i stručnjaka
Bitcoin has faced significant declines in recent days, and experts agree that its price direction depends largely on macroeconomic factors and investor sentiment shifts. The Federal Reserve’s forecast of only one rate cut this year, combined with political uncertainty in Europe, further strengthened the U.S. dollar, putting additional pressure on Bitcoin.
Murad Mahmudov, a prominent Bitcoin investor, outlined two scenarios: If Bitcoin stays above $60,000, the bull market may continue according to the typical four-year cycle. However, he warned that breaking below $60,000 could lead to further declines, with Bitcoin possibly falling below $50,000. Peter Brandt shared a similar view, predicting that Bitcoin could drop to $48,000 if it falls below $60,000.
Izjava o odricanju od odgovornosti: Crypto investments are highly volatile and not suitable for everyone. Never invest money you cannot afford to lose. The information provided is for educational purposes only and should not be considered as financial advice.
