Bitcoin Finds Stability: Ready to Take Off or Crash?

Bitcoin Finds Stability: Ready to Take Off or Crash?

The cryptocurrencies remain with relative stability, with the Bitcoin fluctuating around US$63,000 after reaching its maximum in the last two weeks. Meanwhile, the Ethereum (ETH) consolidates at US$3,000.

However, most cryptocurrencies still remain above last week’s lows. The prospects of a more accommodative Federal Reserve (Fed) have been positive for riskier assets such as cryptocurrencies.

The latest economic data has given some respite to the Fed, which has communicated through its president Jerome Powell that a rate hike is practically ruled out.. The first reduction in official rates is now expected to occur in September.

Key data for the cryptocurrency sector

On the other hand, BTC spot exchange-traded funds (ETFs) appear to be once again supporting the leading cryptocurrency and digital assets in general. Grayscale Bitcoin Trust (GBTC) closed with positive net flows for the first time last Friday, an expected milestone in the market. Additionally, spot BTC and ETH ETFs approved in Hong Kong could be integrated into the Shanghai-Hong Kong Stock Connect platform, which could attract institutional investors from mainland China and generate a new wave of demand.

For its part, QCP Capital points out that bitcoin purchase options for September indicate optimism regarding a possible rise in BTC in the coming months, with prices ranging between $75,000 and $100,000.

From a technical point of view, Javier Molina, senior market analyst at eToro, highlights that bitcoin continues within a range of between $60,000 and $72,000 in the last month. Until prices exceed that level, the correction that began in March persists. Initial support is at $62,000, while resistance is at $68,500. A break above this level could signal new bullish momentum.

Cryptocurrency analyst and trader Jaime Merino, best known for his educational trading channel on YouTube, TradingLatino, explained that Bitcoin could be about to have its last bullish movement on a daily basis before having a major setback.

As Merino highlighted, the price of Bitcoin has been falling for 3 days, so he expects that at any moment the price will rebound towards the approximately US$64,000 area before continuing to fall.

Therefore, the best entry to operate BTC long would be at $61,400, with a stop at $59,668 and a take profit above $64,200, where the movement would be looking for the previous maximum. of US$66,000.

Source: Ambito

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