Bitcoin price forecast: The price of BTC dropped by 2.8% in the last 24 hours to trade around $57,556 at press time. Despite optimism among the market participants about Bitcoin’s recovery, several factors continue to hold it below the $60,000 threshold. Can Bitcoin break above this barrier before the Bitcoin2024 conference on July 25?
Bitcoin Price Forecast: Rising Wedge Spells More Downside for BTC Price
BTC’s price recently rebounded from its fall and started making higher highs and higher lows—clear signs of an uptrend. However, zooming out, the asset seems to form a rising wedge, which usually breaks out to the downside.
The Bitcoin price action is trending below the 21-day, 50-day, and 200-day simple moving averages. Price action recently touched the 50-day SMA and was rejected. The BTC price is expected to drop lower by 3.6% before attempting a 6.5% rally to the top trend line.
The current major support level for Bitcoin is around $54,000. A break below this could cause the asset to drop to $51,500. However, if the price breaks above the rising wedge (although rare), Bitcoin may experience an explosive move to the upside, breaking past the $60,000 resistance level.
Bitcoin transaction fees have dropped to a four-year low. As of July 7, 2024, the average fee for a Bitcoin transaction was $38.69, last observed during the height of the COVID-19 pandemic. The decreasing transaction costs may be attributed to reducing demand for block space.
Data from Coinglass shows that the number of unique addresses active in the network reduced from 1.17 million in March to just above 652,000 in July. This data is further supported by the Bitcoin Fear & Greed Index at 29 (Fear). It indicates investors are uncertain about the market direction and are moving to the sidelines.
Furthermore, the Bitcoin mining industry is experiencing income stress. The recent Bitcoin price drop has resulted in a decline in the hash rate, pushing miners into an elevated risk of capitulation.
These factors may impact Bitcoin price negatively, suppressing it below the $60,000 level.
Trump at Bitcoin2024 May Boost Bitcoin Price
The Bitcoin2024 conference in Nashville will take place July 25 – 27, and Donald Trump is expected to give a 30-minute speech. This gesture may positively impact Bitcoin’s price as the presidential candidate has been vocal about his support for cryptocurrencies.
In other positive news, Bitcoin and Ethereum have been ruled as commodities in the state of Illinois by the CTFC Chairman Rostin Behnam, hopefully ending any debate on whether they are securities.
Check out my testimony today at the Senate Committee on Appropriations. https://t.co/KfLMZtk0Pc pic.twitter.com/u4jiQ8mcHI
— Rostin Behnam (@CFTCbehnam) June 13, 2024
Bottom Line
Recent market analysis reveals multiple factors keeping Bitcoin’s price below the $60,000 threshold. Understanding these forces is crucial for investors to gauge BTC’s short-term potential.
Frequently Asked Questions (FAQs)
You can buy Bitcoin through cryptocurrency exchanges such as Coinbase, Binance, Kraken, and others. To purchase Bitcoin, you’ll need to create an account on one of these platforms, verify your identity, and deposit funds using a bank transfer, credit card, or other payment methods. Once your account is funded, you can buy Bitcoin and store it in a digital wallet.
The SEC (Securities and Exchange Commission) regulates the securities markets, including stocks and bonds, focusing on protecting investors and ensuring market transparency. The CFTC (Commodity Futures Trading Commission) oversees the commodity futures and options markets, aiming to protect market participants from fraud and manipulation while ensuring market integrity.
Bitcoin, like any investment, carries risks. Its price can be highly volatile, leading to significant gains or losses over short periods. While Bitcoin has been praised for its potential as a store of value and hedge against inflation, it’s also susceptible to regulatory changes, market sentiment, and technological issues.
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Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video gaming. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes that blockchain will revolutionize many industries in the years to come. When he is not writing, you can find him playing video games or chasing waterfalls.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
