• Bitcoin has been consolidating between $27,000 and $28,500 for the past three weeks, indicating that a potential price decline could be imminent.
• Bitcoin prices have been reacting strongly to high-impact news, particularly from the United States Federal Reserve (Fed).
• Despite the indicators suggesting a potential price drop, the recent macro breakout from last year’s falling trend has renewed optimism for sustained bullish sentiment.
Overview
The article discusses whether or not Bitcoin will rally to $30k ahead of US employment data today. It looks at indicators that suggest a potential price drop, as well as current macro conditions and how Bitcoin prices have reacted to high-impact news. Despite this being the current situation, there is still optimism for a sustained bullish trend moving forward.
Indicators Suggesting Price Drop
Bitcoin has been consolidating between $27,000 and $28,500 for the past three weeks which could indicate that a possible price decline is around the corner. Additionally, Bitcoin has been forming a possible double top on higher time frames which historically precedes a price drop. On the four-hour time frame specifically, it appears that an implosion may be imminent due to there still being in play what is known as a ‘weekly death cross’ between the 50 and 200 Moving Averages (MAs).
Optimism For Sustained Bullish Sentiment
Despite all these indicators suggesting that we may see some sort of capitulation in regards to Bitcoin’s value soon, many believe that due to its recent macro breakout from last year’s falling trend we should remain optimistic about it retaining its bullish sentiment in future. This suggests that any short-term drops should not necessarily be seen as indicative of long-term trends occurring within this space.
High Impact News Reacted To By Prices
Bitcoin prices have also been shown to react strongly when it comes to high impact news stories – particularly those related to changes within The Federal Reserve (Fed). Last month saw The Fed increase interest rates by 0.25 basis points up to between 4.75%-5%, with this leading US inflation dropping down from 9% in June 2022 down to 6%. This was further indicated by The Feds balance sheet decreasing by $73 billion down to around 8 trillion dollars just last week alone due primarily because of Quantitative Tightening (QT) taking place within the system itself..
Conclusion
Overall, despite indicators pointing towards some sort of capitulation taking place in regards to Bitcoin’s value soon we can still remain optimistic about it retaining its bullish sentiment moving forward provided we are able understand and react quickly enough when it comes major news stories impacting upon our understanding of this particular asset class/market space overall.