Bitcoin's price fell nearly 1% to around $29,500 amid a flat market trend, following a 4% drop below $30,000 last week due to the Federal Reserve's interest rate hike. Wall Street economists expect a rate hike pause in the next Fed meeting, which may limit Bitcoin's downside below $29,000.
"93% of the outflows were from long-Bitcoin investment products, while short-Bitcoin saw its 14th consecutive week of outflows totaling $3.1 million. This suggests investors have been taking profits in recent weeks, with the sentiment for the asset overall remaining supportive," James Butterfill, investment strategist at CoinShares, said in an article on Coin Telegraph.
Despite the recent dip, the price of Bitcoin has been trading inside the $28,850-29,660 band as part of a flat market pattern that began a week ago. Following a 4% decline below $30,000 last week, mostly as a result of the Federal Reserve's interest rate hike, Bitcoin has been moving sideways, Coin Telegraph reported.
Rate increases have typically been negative for cryptocurrencies like Bitcoin that don't pay interest. However, Wall Street economists predict the Fed will hold off on raising interest rates at its next meeting in September, which might restrict Bitcoin's decline below $29,000, according to Coin Telegraph.
On the other hand, because of wider market uncertainties, the BTC finds it difficult to maintain its price above $30,000, which is viewed as a psychological resistance level. Reasons for this include a recent Defi hack that lost $47 million, as well as regulatory concerns surrounding Binance, the largest cryptocurrency exchange in the world by volume, Coin Telegraph noted.
Technically speaking, Bitcoin is currently trading above its 50-day exponential moving average (50-day EMA; the red wave) and is aiming for a close above $30,000, which serves as its immediate resistance level. If the price rises above $30,000, the CoinTelegraph article indicates there is a good chance BTC will surge toward a local top level of $31,500 for the month of August.
As long as the price of BTC trades above the support of its multi-month ascending trendline, the upside objective appears to be viable. But if Bitcoin clearly breaks below the 50-day EMA and the ascending trendline, it might collapse toward its 200-day EMA, which is close to $27,000, Coin Telegraph reported.
