Bitcoin held its ground slightly higher on July 8 as Wall Street opened with U.S. stocks hitting new highs.
Bitcoin continues to decouple from sky-high stocks and gold.
Bitcoin (BTC) price is locked in a fierce price battle for $56,000, according to data from Cointelegraph Markets Pro and TradingView.
Spot prices declined throughout the weekend amid rising volatility and low liquidity, and were turbulent after the weekly close on July 7, but rebounded during the Asian trading session.
Cryptocurrency markets then fell again, sparking a broader exodus from risky assets as the S&P 500 and Nasdaq Composite hit new highs that day.
“Stocks and gold have been rallying since the beginning of last week, but crypto prices have moved in the opposite direction,” the trading firm QCP Capital summarized in part of its latest announcement to subscribers to its Telegram channel.
So attention is focused on the macroeconomic report due out this week and the testimony of Federal Reserve Chairman Jerome Powell.
“FED Chair Powell’s testimony on Tuesday, comments on Wednesday, or some crypto-related legislation could be catalysts for speculators,” Keith Alan, co-founder of trading resource Material Indicators, wrote in part of his latest analysis on X.
Like many market participants, Allen took a cautious tone on Bitcoin, warning that a new macro low could still easily occur.
“The market could test your confidence all the way to $48,000,” he continued, alongside a chart showing key support lines featuring one of Material Indicators’ proprietary trading tools.
“A quick recovery above $50,000 would then be crucial to prevent a dump to test support at the 2-year trend line.”
Allen predicted a 40% drop from the March all-time high of $73,800, which he noted was what he had been expecting since the Bitcoin block subsidy halving event occurred a month later.
“This bounce is not only the deepest bounce of the cycle so far, it is also officially the second longest bounce of the cycle (49 days),” said popular trader and analyst Rekt Capital, continuing his discussion on the topic, comparing the current downtrend to the previous downtrends.
There is hope for a Bitcoin ETF
Some hoped that a U.S. spot Bitcoin exchange-traded fund (ETF) could provide the buyer interest needed to rally higher.
Related: BTC Price Risks ‘Double Top’ – 5 Things to Know About Bitcoin This Week
They recorded net inflows of $143 million in the trading days leading up to July 5, the highest in a month, driven by institutional interest in “buying the dip.”
“The surge from $16,000 to $73,000 was largely driven by ETFs, which are buying the rumor and buying the news,” Sina G, co-founder and chief operating officer of Bitcoin custody consulting firm 21st Capital, wrote in a recent analysis piece on X.
“ETF flows were very strong until mid-March and the market was going up. Then ETFs slowed down and the outflows from bankruptcies increased, causing a decline towards $56,000.”
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.