It was a rollercoaster of a day on Thursday for Bitcoin. Despite some encouraging news from the U.S. about inflation cooling off, BTC bulls just couldn’t break through that stubborn resistance line. After a brief moment of hope, Bitcoin stumbled again, dropping below $57,000.
Here’s the scoop: the U.S. inflation report was positive, which initially boosted optimism. Traders hoped this would push Bitcoin above the descending trendline that’s been haunting us since June. A breakthrough there could have attracted momentum traders and potentially signaled the end of the recent pullback. But, alas, Bitcoin faced rejection at that trendline, much like it did on July 1, leading to further price declines.
However, all is not lost! The daily MACD histogram is hinting at a potential bullish shift. This indicator, which helps gauge trend strength, is teasing a crossover above zero. Plus, the supply overhang from Germany’s Saxony state, which contributed to the recent price drops, is nearly exhausted.
Let’s not forget the wild cards: the FTX repayments and the Fed rate cut bets. According to FalconX, a prime broker, these could offer some much-needed support. They believe that a portion of the $16.3 billion from FTX could turn into buying pressure, and the possibility of an interest rate cut in September might benefit risk assets like Bitcoin.
Additionally, there’s some uncertainty about how much of the 95,000 BTC (part of the 140,000 BTC set to be distributed to Mt. Gox creditors) will hit the market. FalconX suggests that selling from Mt. Gox creditors might have a different impact compared to Saxony’s sales. This could mean a more gradual release or more flow to exchanges, which might mitigate some selling pressure.
So, while it was a tough break on Thursday, keep your heads up. The market is complex and ever-changing, and there are still factors that could turn the tide for Bitcoin. Stay informed, stay cautious, and let’s see what the next few days bring!
