- For the past few days, Bitcoin has had difficulty moving higher and staying above the $31,000 mark.
- The bulls are fighting to defend $1,840 but can’t push Ethereum above $1,900.
- Bears maintained pressure as the U.S. Dollar Index (DXY) fell below 102.
- Second-quarter profits and July 12 inflation data may affect the US equity market.
- The following data point that the markets will be focusing on is the CPI data release on Wednesday.
For the past few days, Bitcoin has struggled to reach beyond $31,000, but Standard Chartered is confident for this year and next. According to the bank, Bitcoin might reach $50,000 this year and $120,000 by the end of next year. Bitcoin’s unexpectedly flat July trading suggests investors are hesitant to chase the 21% price surge over the past month. The range-bound trading pattern may be determined by Wednesday’s Consumer Price Index (CPI), the first substantial inflation data since mid-June. A leveling or increase might restrict investors, while a sustained decrease could bolster them.
Bears maintained pressure as the U.S. Dollar Index (DXY) fell below 102. The index may fall to 101.90. Buyers must protect this level because a break below it might threaten 100.80. S&P500 bulls are trying to defend 4,375, but bears are aggressive at higher levels.
Bitcoin Balances Drop on Exchanges:
Since BlackRock applied for a spot BTC ETF, institutional investors have steadily expanded their holdings of Bitcoin. This has corresponded with a drop in BTC holdings across exchanges to fresh lows. Meanwhile, the greater accumulation of institutional investors has coincided with a decrease in Bitcoin balances on exchanges, indicating that investors are increasingly preferring self-custody.
The total BTC balance on all exchanges is at 2.26 million, according to Glassnode data, the lowest balance since March 2018. While all is going on, Bitcoin is still trading above $30,000, most recently touching a yearly high of $31,500.
Bitcoin Price Analysis:
Bitcoin bounced off the $30,000 psychological mark and retested $31,000 since last week. Short-term retests weaken support and resistance levels. Bulls must push the price to $31,000–31,500 to avoid a decline. If bulls can conquer this zone, BTC/USDT may climb to $33,000.
If the price falls below $30.000, short-term bulls may take profits. They might drop to $29,250. The pair may stay between $27,500 and $31,500 after such a deep correction. On Wednesday at 12:30 UTC, the U.S. CPI data will likely affect Fed interest rate predictions and market volatility.
Concluding thoughts
Glasnode stats support the rising institutional interest in the Bitcoin market. The number of BTC whales reached a one-month high of 1,685 on July 7, according to the data provider. Aside from that, earlier institutional sceptics’ perceptions of Bitcoin have shifted. BlackRock CEO Larry Fink’s recent words best depict this shift in opinion.
Fink, a long-time sceptic of Bitcoin, has stepped out in support of the flagship currency. The CEO of BlackRock touted it as an alternative investment to hedge against currency depreciation. While the long term outlook is positive, macroeconomic indicators are crucial in the short term. The stock market in the United States is likely to be influenced by second-quarter profits and inflation statistics due on July 12. This will almost certainly set the stage for a risk-on or risk-off sentiment.
