Bitrabo Editorial
Bitcoin is currently trading under $60,000 and experiencing a decline. While there is some positivity around the potential resurgence of bullish activity to reclaim significant resistance levels, a certain analyst remains pessimistic about the situation.
Key Level Hurdle for Bullish Market Sentiment
According to an analyst’s post on X, the short-term outlook favors sellers unless there is a swift change in the prevailing trend. Failure by the bulls to counter the overwhelming selling pressure would likely result in a continued downward trend as per the analyst’s projections.
From a technical perspective, Bitcoin is currently within a bearish structure. Despite occasional instances of strength, buyers have struggled to push the prices higher such as reconquering the $60,000 mark.
In the medium term, the immediate support level rests at $49,000 or the lows of August. On the upside, buyers need to gather momentum to reclaim $72,000.
The present price action dynamic is hindering bullish activity. The analyst holds a bearish stance, indicating that a shift in the short-term trend would only occur if BTC manages to surpass $68,000.
Given that the current price point is nearly $10,000 below this critical threshold, it may pose a significant challenge for optimistic traders.
If buyers are unable to breach this resistance trend line and ideally climb past $72,000, the analyst foresees prices continuing to decline.
Focus on Inflation, the US Federal Reserve, and Spot ETFs
Despite prevailing apprehensions, analysts anticipate fundamental factors to provide price support in the upcoming weeks. Notably, the recent developments in inflation within the United States are expected to prompt a reduction in interest rates for the first time in over two years in September.
The historical trend of crypto price upticks following interventions from 2019 to 2020 suggests that Bitcoin prices will likely reap benefits from this anticipated adjustment.
With the potential approval of spot Bitcoin ETFs early next year, the increased valuation could attract institutional investors, potentially propelling the coin to new heights, a positive development for holders. Data from Soso Value reveals that spot Bitcoin ETF issuers in the US presently manage a combined total of over $52.6 billion in the cryptocurrency.