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Experts told how the dynamics of the first cryptocurrency will change in the coming days
On August 7, Bitcoin is trading at $23.1 thousand, over the past week, the cryptocurrency has fallen in price by 2%. In the comments of RBC-Crypto, experts analyzed the situation on the market and told what dynamics to expect in the short term.
“Bitcoin will continue to strengthen with the growth of indices”
Financial Analyst BitRiver Vladislav Antonov
Trades during the week from August 1 to 6 were relatively calm in the price range of $22.4-23.6 thousand. In the first half of the week, the focus of market participants was the visit of the Speaker of the US House of Representatives Nancy Pelosi to Taiwan. The rise in geopolitical risks has reduced risk appetite. And since the cryptocurrency and stock markets are risky assets, investors have been closely following the news about Taiwan.
www.adv.rbc.ru
Tensions between China and the United States have increased after Chinese President Xi Jinping threatened an armed response if N. Pelosi arrived. She landed safely at the Taiwan airport without notifying the Chinese side. A day later, she also flew back safely. China did not respond to the provocations of the United States, but applied economic sanctions against Taiwan and began conducting large-scale military exercises on August 4.
On Thursday, August 4, the BTC/USDt pair fell to $22.4 thousand, after which the growth of quotations resumed. Investors were nervous before the release of data on the labor market in the US.
On Friday, August 5, Bitcoin rose by 3.05% to $23.3 thousand. Increased volatility was observed at 15:30 Moscow time. A strong employment report in July tempered expectations of a slowdown in the Fed’s monetary policy tightening. Above-expected readings caused the US dollar to rally and stock indices to fall. Stocks of technology companies pressed on the indices. Tesla shares fell 6.6%, hitting the S&P 500 and Nasdaq hard. Meta shares were down 2%, Amazon shares were down 1.2%.
At the September 20-21 FOMC meeting, another 75 bps rate hike seems likely if inflation over the next two inflation reports shows no signs of slowing down. Accordingly, the focus of attention shifted to inflation data (August 10). It is expected that the consumer price index in the US rose in July by 8.7% year-on-year after rising by 9.1% in June.
US economic data is sending conflicting signals. The strong employment figures seem increasingly inconsistent with other data. This means that trading on the stock market will continue to show multidirectional dynamics. Accordingly, bitcoin can be rocked in the week from August 8 to 14.
The resistance is the level of $23.5 thousand. Above it, the new resistance will be the zone of $24.6-25.2 thousand. Since buyers have not been able to continue the upward movement since the new month, a wedge with three peaks will form on the daily time frame with a new growth. For buyers, this means the following. If the price stalls around $25,000, then we can see a reverse movement to the level of $20,000 at the moment. The crypto market maintains a correlation with stock indices. If we do without the negative in the States, then with the growth of indices, the strengthening of bitcoin will continue.
“A new period of decline with a short-term rebound”
Head of Analytical Department AMarkets Artem Deev
The upward dynamics in bitcoin and for the crypto market as a whole can be maintained due to positive news and investor confidence in the development of the economy (both the US and the EU, and the world). But we will definitely not receive such data next week – the recession is developing globally and will increase its scale.
Another confirmation of this may be the data on inflation in July in the US (y/y) – they will be published on August 10. The consensus forecast expects 9.1%, which is a record since the 80s of the last century.
Such information is expected to lead to a decrease in world stock indices, the Fed will again announce its position on the rate (already now, many say that the rate should be raised more strongly). This means that investors will again avoid risk and invest in protective assets.
Most likely, on Wednesday, a new period of bitcoin’s fall will begin – to the level of $17-19 thousand per coin, followed by a short-term rebound, as soon as the market survives the statistical data and waits for new ones.
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