Bitcoin may rise due to fundamental positivity

17 July 2023 210
Bitcoin may rise due to fundamental positivity

Bitcoin has been consolidating in a narrow range of $30,000–31,500 for almost a month. Many growth conditions have formed for the digital currency. The most relevant of them are considered further.

Inflation in the U.S. continues to decline. The correlation between the key rate and Bitcoin price is similar to that of gold.

U.S. inflation data released last week raised hopes that the Federal Reserve's (Fed) monetary policy tightening would soon come to an end.

U.S. consumer price growth slowed to 3% year-over-year in June with the lowest gain in more than two years.

According to Brian Lan of Singapore-based dealer GoldSilver Central, focus remains mostly on the next central bank meeting.

Ripple has partially won a lawsuit against the U.S. Securities and Exchange Commission (SEC). The litigation began back in 2020.

Along with the judge's decision, the XRP token is not considered a security, but only when sold on cryptocurrency exchanges. However, it is viewed as one when sold to institutional investors. In that case, it should be regulated similarly to stocks. The court's decision is rather ambiguous. However, the crypto market grew as Ripple managed to partially win the court. This positivity might continue in the coming weeks.

The SEC has accepted applications for spot bitcoin ETFs from financial organizations. The asset might grow in anticipation of the regulator’s decision. There is almost no doubt that the SEC will accept applications for ETFs. This will be accompanied by high market interest and an upside exit from the current retracement. However, after the start of trading in the new instrument, Bitcoin may move to correction, as it will start fixing positions after a long period of waiting. Nevertheless, the short-term view on the asset is positive.

According to technical analysis, Bitcoin is in the narrow consolidation. Currently, the lower limit of the trend is being tested. The reversal and retracement to the upper limit of the trend are assumed.

The growth target will be the level of $31,500. A Stop-loss will be set at breaking through the lower limit at the level of $29,500.

BTCUSD is likely to rise:

Take profit – 31,500

Stop-loss – 29,500

This content is for informational purposes only and is not intended to be investing advice.

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