Bitcoin (BTC) has kicked off Q3 2024 with a surge as bullish sentiment aims to reclaim previous highs.
The strength in BTC price appears to be returning, supported by steady levels around $60,000 across weekly, monthly, and quarterly metrics. With a 4% increase in the last 24 hours, Bitcoin faces the challenge of sustaining its bullish momentum after months of consolidation, which recently tested and rebounded from the $60,000 mark, now viewed as potential bear traps.
Traders are now eyeing critical trendlines beyond $60,000 to gauge Bitcoin’s rebound prospects, amidst macroeconomic data that could heighten volatility. This week, market focus includes key U.S. unemployment figures and inflation indicators from senior Federal Reserve officials, influencing market sentiment and Bitcoin miner activities.
Cointelegraph examines these developments closely as BTC/USD strives to recover from what bulls hope was a false breakdown at the start of July.
Bitcoin’s Battle for Bull Market Continuation
June saw Bitcoin rally towards the end, securing a strong close above $62,500 for the week, month, and quarter. BTC/USD briefly peaked at $63,724 on Bitstamp before consolidating, reflecting fluctuating market dynamics observed on Cointelegraph Markets Pro and TradingView.
Monitoring by CoinGlass indicates a 7% decline in June, contributing to a total Q2 drop of 12% for Bitcoin.
Looking ahead, market participants remain cautious, anticipating further recovery needed to bolster market sentiment. Keith Alan from Material Indicators notes the struggle for Bitcoin to breach the 21-Week Moving Average, suggesting potential retesting of lower levels before aiming for all-time highs.
Daan Crypto Trades highlights significant gaps in CME Group Bitcoin futures, underscoring ongoing market dynamics and potential for future price movements.
Order book liquidity reveals ongoing market interest, particularly around the $64,100 mark, highlighting key areas of resistance.
Unemployment Data and Fed’s Influence
The week ahead includes crucial U.S. unemployment data amidst a holiday period, posing potential catalysts for crypto market movements. Federal Reserve Chair Jerome Powell’s upcoming speech on monetary policy and the release of inflation policy meeting minutes add further layers of uncertainty.
Trading desk QCP Capital remains optimistic about July’s risk asset climate, citing historical returns and market behavior following negative trends in June.
Key BTC Price Trends
Bitcoin faces resistance near $64,000, where various trendlines converge, including the 21-week moving average and the short-term holder (STH) cost basis. This level historically serves as support during bullish cycles, with exceptions noted.
SignalQuant warns of potential resistance forming around current STH prices, reflecting cautious market sentiment among short-term holders.
Miners’ Outlook and Market Sentiment
Despite Bitcoin’s moderate price rebound, network fundamentals indicate ongoing miner adjustments post-halving, with hash rate metrics showing signs of miner “capitulation.” Decreases in miner-affiliated wallet withdrawals and selling volumes suggest improved profitability conditions, boosting market sentiment.
Crypto market sentiment, as reflected by the Crypto Fear & Greed Index, shows a shift towards “greed” following the quarterly close, indicating a positive turn in overall market sentiment.
Conclusion
Bitcoin enters Q3 2024 with renewed optimism amidst bullish attempts to reclaim lost ground. As market dynamics and macroeconomic indicators unfold, Bitcoin’s resilience and price movements continue to captivate traders and investors alike, shaping the broader cryptocurrency landscape.
Note: This article does not offer investment advice and encourages readers to conduct their own research before making any financial decisions.