Bitrabo Editorial
Bitcoin faces resistance between $70,000 and $72,000 but is currently trading just below $70,000. It needs to break this resistance to maintain the upward trend seen in Q1 2024. The crucial support level to monitor is at $66,000.
If bearish pressure persists, there could be further losses in the market.
Potential Drop in Bitcoin Price to $62,300 Support Level
An analyst predicts that continued liquidation may drive Bitcoin down to the Short-Term Holder Realized Price (STH Realized Price) of $62,300. This level is considered an area of low long liquidity and could offer support for bullish investors.
The STH Realized Price serves as a sentiment indicator and could act as either a support or a selling point for investors based on Bitcoin’s price movement relative to this benchmark.
Currently, the STH Realized Price stands at $62,300, with the one-to-three-month Realized Price at $66,600. A drop below $66,000 could accelerate further selling pressure towards the 155-day STH Realized Price.
Focus on FOMC Meeting Amid Economic Data in the US
Investors are closely monitoring the upcoming Federal Open Market Committee (FOMC) meeting against the backdrop of strong employment data and high inflation figures in the United States. The Federal Reserve is expected to maintain the current interest rates amidst positive labor market conditions.
Recent employment data surpassed expectations with 272,000 new jobs created in June, surpassing economists’ forecasts of 185,000. However, strong non-farm payrolls (NFP) data tempered expectations of an immediate rate cut.
Despite the solid employment figures, decreasing inflation rates at 3.3% year-to-date may increase the likelihood of a rate cut, providing a positive outlook for Bitcoin investors.