Bitcoin may rise and test the rectangle boundary from above

31 July 2023 136
Bitcoin may rise and test the rectangle boundary from above

Bitcoin is now below the rectangle, which was written about earlier. However, there was no significant acceleration of the decline. There was no fundamentally negative news. Now the price is trying to test the figure from the bottom to the top. In general, bitcoin has no obstacles for this.

 

Last week, the central banks meetings were the flagship events. There weren’t any negative surprises. All actions and statements of regulators were within expectations. In general, it’s positive for Bitcoin dynamics. The price growth expectations are supported by fresh economic data.

 

Friday's US consumer spending index showed the smallest year-on-year increase in more than two years. This reinforced markets' expectation that the Federal Reserve's rate hike cycle will soon be over.

 

Meanwhile, two European Central Bank officials on Friday raised the issue of ending the regulator's sharpest and longest string of interest rate hikes. This is due to the deteriorating outlook for the eurozone economy.

 

The Bank of Japan on Friday announced the start of a slow shift away from decades of massive monetary stimulus. This will allow interest rates to rise more freely in line with rising inflation.

 

The cryptocurrency market continues to await the SEC's decision on the emergence of spot Bitcoin ETFs. This event could help Bitcoin to significantly grow. Large funds will be able to invest in the largest cryptocurrency in the world. However, our strategy is that the growth will only be in anticipation and upon the launch of the new tool. Once the bitcoin ETF starts trading, there is a high chance of a corrective movement. This opinion is based on history. In 2018, the cryptocurrency fell after the launch of the futures on it. In 2021, the decline coincided with the launch of the bitcoin futures ETF. Now history could repeat itself. However, until approval, the cryptocurrency is likely to continue rising.

 

According to the technical analysis, Bitcoin has been consolidating at the new basin level. Most likely, there will be an attempt of a new recovery and testing of the previously mentioned rectangle. The growth target will be the level of $29,900. A Stop-loss is placed at the update of the last days’ lows, which corresponds to the price of $29,000.

 

Growth of the BTCUSD:

Take profit — 29,900

Stop-loss — 29,000

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

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