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Bitcoin Price Support at $54,450: Four Key Factors to Watch

Since reaching a high of $71,758 in early June, Bitcoin (BTC) has declined by 24%. As market sentiment remains elevated, the next direction for pioneer cryptocurrency depends on four crucial narratives that continue to unfold.

Retail traders adjust their trading strategies based on market sentiment, explaining the heightened volatility in crypto.

Key Factors Currently Impacting Bitcoin Price:

$54,450 Level as Potential Support:

The $54,450 level may serve as a support for Bitcoin’s price. Despite twice breaking below the critical Relative Strength Index (RSI) threshold of 30, BTC has not found a bottom yet, suggesting a possible bottoming-out.

Potential Launch of Ethereum ETF:

Cryptocurrency enthusiasts, along with Ethereum token holders, are closely watching whether the spot Ethereum ETF (Exchange-Traded Fund) will begin trading this week. The U.S. Securities and Exchange Commission (SEC) recently collected the final S-1 filings from potential ETH ETF issuers, indicating progress in the approval process.

German Government’s Bitcoin Sell-Off:

Since June 19, the German government has transferred over 10,000 BTC. These nearly $1 billion worth of Bitcoin has been moved to various digital wallets and exchanges. This has catalyzed recent Bitcoin selling, as investors preemptively sell before any potential supply shock.

Some speculate that the German government may eventually slow down Bitcoin transactions, which could benefit the flagship cryptocurrency. Joana Cotar, a prominent cryptocurrency activist and German parliamentarian, has expressed local media’s capture of this appeal, with anger from German investors.

Fed Chair’s Testimony This Week:

U.S. inflation rates are steadily declining, and the economy shows strong momentum but remains below satisfactory levels. Given these factors, an economic soft landing seems possible, especially after positive employment data released on July 5. The long-awaited shift in monetary policy by the Federal Reserve now appears feasible.

“The Fed’s latest projections urge investors to remain cautious. The rate cut is lower than expected, putting pressure on higher-risk assets. European political uncertainty and a stronger dollar are suppressing Bitcoin prices,”

notes a popular account on X.

Disclaimer: This price analysis article serves as reference only and should not be construed as financial or investment advice. Before making any financial decisions, please conduct your own research and consult professionals.

Sentiment: Positive

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