One key metric, the Bitcoin exchange reserve, has been steadily declining since the beginning of 2024. This metric, which tracks the amount of BTC held in exchange wallets, serves as a proxy for potential selling pressure. A decreasing reserve indicates that investors are withdrawing their Bitcoin from exchanges, typically a sign of accumulation and long-term holding. Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. After plunging to a low of $50,000, Bitcoin managed to stage a recovery, briefly retesting the 200-day moving average.

Bitcoin Exchange Reserves Signal Potential Supply Shock

The political landscape is likely to play a crucial role in shaping the regulatory environment for cryptocurrencies in the United States, further adding to the uncertainty. Bitcoin’s price movements have also been influenced by broader economic indicators, particularly the latest U.S. The CPI print, which came in below expectations, initially provided a boost to risk assets, including cryptocurrencies.

IMF Denies El Salvador’s Reports of Bitcoin Reserve Increases

• This decline has led Wall Street analysts to predict that the Federal Reserve might initiate the first interest rate cut next week.
• The political landscape is likely to play a crucial role in shaping the regulatory environment for cryptocurrencies in the United States, further adding to the uncertainty.
• Powered predictive analytics and professional investment strategies for self-directed investors.
• Another incident that probably spurred investor sentiment was the mining crackdown in China.
• According to TradingView’s technical analysis, 17 of the 26 technical indicators are signaling “buy”, 9 are staying neutral while none of the technical indicators signal “sell”.

The significant reduction in exchange reserves points to a potential supply shock on the horizon. If this trend continues, it could lead to a scarcity of bitcoin price hits $58k Bitcoin available for sale, potentially driving prices higher in the coming months. This accumulation behavior is a positive indicator, reflecting growing investor confidence in Bitcoin’s long-term prospects. In a shorter timeframe, particularly on the 4-hour chart, Bitcoin’s price has shown signs of resilience, bouncing back rapidly from the $52,000 support following a recent drop. However, the market is encountering stiff resistance at the $61,000 level, creating a bullish flag pattern.

• Rekt Capital reiterated earlier coverage of BTCUSD attempting to break through a downward trendline — something met with rejection throughout recent days.
• Currently, Bitcoin is eyeing the $56,000 support level, a crucial juncture that could dictate its next move.
• The US Dollar Index (DXY) was down 0.35% on July 12 at the time of writing, headed toward its lowest levels in over a month.
• The US annual CPI data, which majorly accounts for overall inflation, fell from 2.9% to around 2.5%, its lowest since March 2021.
• Conversely, any sustained progress above the daily high of $58,500, and BTC may very well be en route to $64,801 and over.

Bitcoin Dominance Expected to Fall, Signaling Upcoming Altseason Surge

Commenting on this, some crypto analysts attributed the lack of selling pressure from miners, so combining this factors into the exchanges must have also helped in spiking Bitcoin price. However, failure to break above the 50-3D EMA could result in a decline towards the lower trendline, around $54,800. This level, which corresponds with the 0.236 Fibonacci retracement line, will be crucial in determining Bitcoin’s next move. The market’s response to these key technical levels will likely set the tone for Bitcoin’s performance in the coming weeks. On the other hand, prominent figures like former President Donald Trump have hinted at a major Bitcoin-related announcement, which could have a substantial impact on market sentiment.

How to Choose Altcoins

It was seen that Tesla’s tweets can make the price of BTC go nut, BTC went up 15% just by adding #Bitcoin as a hashtag to his profile, also his Twitter actions have increased the price value for #doge as well. Some other reasons for increase in the price of BTC are miners and spot traders activities. Analysts assert that this retracement is normal and offers a springboard upon which BTC can attack the $58,000 threshold again. They however caution that any further slip beyond the $54K support and the crypto may spiral downwards to $50,000. Conversely, any sustained progress above the daily high of $58,500, and BTC may very well be en route to $64,801 and over. Bitcoin price started a decent increase after it broke the $55,000 resistance zone.

Space and Time token price has declined 25% due to fading momentum from Grayscale fund news. Bitcoin has breached another record level, hitting $120,000 for the first time. Rekt Capital reiterated earlier coverage of BTCUSD attempting to break through a downward trendline — something met with rejection throughout recent days. Skew noted that barring energy, food and trade services, the index was “basically flat” and less of a surprise to markets. “So overall PPI is sticky on YoY basis if not higher due to higher prices & lack of supply,” popular trader Skew wrote in part of a response on X (formerly Twitter).

Aayush Jindal

As Bitcoin navigates through a complex landscape of technical levels, on-chain metrics, and macroeconomic factors, the market remains at a critical juncture. The interplay between support and resistance levels, coupled with broader market sentiment and political developments, will be key in shaping Bitcoin’s trajectory. Investors should closely monitor these factors, as the cryptocurrency could be poised for significant moves in the near future. Whether Bitcoin can sustain its recovery and break above key resistance levels or faces further downside will depend on a confluence of technical, fundamental, and macroeconomic drivers. Bitcoin (BTC) has been navigating a turbulent market environment, with its price action reflecting the broader uncertainty in the financial landscape. The cryptocurrency recently broke below the critical 200-day moving average, situated around the $63,000 mark, which has historically served as a significant support and resistance level.

Bitcoin is currently trying to sustain its breakthrough past the $58K price level after experiencing an initial rejection. The leading coin is riding a five-month rally and fast approaching its former all-time high over $60,000. However, BTC failed to retain its gains above $58,000 early Thursday, and retreated to its nearest support level at $54,000. Furthermore, the charts show a decoupling of the relative strength index (RSI) from price increase and a loss of upward momentum. From a technical perspective, Bitcoin’s price action is currently pressured below the 50-3D exponential moving average (EMA), a critical level that has often dictated market direction. A breakout above this level could see Bitcoin targeting the $66,900 resistance, which aligns with the upper trendline of the prevailing descending channel pattern.

News

The US Dollar Index (DXY) was down 0.35% on July 12 at the time of writing, headed toward its lowest levels in over a month. Buying and trading cryptocurrencies should be considered a high-risk activity. Despite Bitcoin’s price rebound above $58K, there is still fear of further cryptocurrency capitulation in September before a bullish rebound in the fourth quarter. Investors turned their attention to the Bureau of Labor Statistics’ monthly and annual Consumer Price Index (CPI) data after the US presidential debate concluded without any mention of cryptocurrency issues.

While the opposite of July 11’s Consumer Price Index (CPI) numbers, BTCUSD avoided a downturn on the PPI release, modestly gaining in line with US stocks while dollar strength tumbled. Data from Cointelegraph Markets Pro and TradingView showed Bitcoin BTCUSD price strength improving as the Producer Price Index (PPI) print for June rose more than forecast. Revolut has resumed crypto withdrawals in Hungary, but buying and selling remain restricted due to new regulatory requirements. For example, a whale investor withdrew 800 Bitcoins, worth over $45 million, from Binance in the last 24 hours.

Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape. Further upside potential is also supported by our gauge of the cryptocurrency market sentiment, which have being decreasing in the past few weeks but still remains in a healthy bull market territory at 42%.