Takeaways from the conference:
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BTC has been consolidating in a channel descending, however weak onchain activity indicates a lack momentum.
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Inflation data rising to 2.7% and price inflation remaining high reduces the chances of Fed rate reductions, putting pressure on Bitcoin and risk-assets.
BitcoinBTCPrice volatility was high at the start the week. Sharp swings on the weekend and the following Monday led to significant market shake-ups.
As per GlassnodeThe market sentiment changed rapidly in 24 hours. $28.6 Million in longs and $25.2 million in shorts positions were liquidated. This was a rare double-sided move that caught many leveraged investors off guard.
The open interest expressed in BTC dropped by approximately 7% from 360,000 BTC to 334,000 BTC. This rapid decline indicates that speculative leverage has been temporarily cleared, and the market may be in a reset stage.
The following are some of the ways to get in touch with us Bitcoin remains in the $100,000–$110,000 range, BTC’s onchain activity shows signs of cooling. The profitability metrics have dwindled, while user participation has remained subdued. This suggests a phase of consolidation. Glassnode stated that recent gains appear to be being digested by the market, which is likely to wait for another surge of demand to drive the next leg up.
Technically, Bitcoin’s inability to capture external liquidity at $109,000 led to an overall decline on the chart. Current price movement is contained within a channel that descends, and a major area of concern lies between $103,400 to $104,600.
The 200-day moving exponential average (EMA) supports this zone, which is aligned with a fair value gap. This could lead to a rebound.
A bullish breakout over the channel upwards to reach new highs is possible, given that BTC accumulates its internal liquidity in this range. The broader market structure may remain in consolidation until the momentum is built and onchain activity resumes.
Related: Bitcoin long-term holders stack 800K BTC per month in record hodl run
Bitcoin is facing headwinds due to rising inflation.
Lack of follow-through on bullish sentiment could lead to a bearish trend continuing into next week. The latest inflation figures suggest that the Federal Reserve is unlikely to change its position despite recent chatter about a possible interest rate reduction.
The preferred Fed metric of Personal Consumption Spending or PCE inflation rose to 2,3%. This is on par with the expectations. Core PCE increased to 2,7% which was slightly higher than the projections. It is the first rise since February 20,25 and indicates renewed inflationary tension.
The Fed will likely maintain the rate freeze, keeping conditions for financial markets tight. This is not favorable to risky assets such as Bitcoin.
Glassnode data The modest increase of $7.7 Billion in the spot volumes during Q2 further confirms this cautious outlook. In the early part of the quarter, transfer volumes dropped by 36%. This shows a lack in speculative urgency.
Related: Bakkt Holdings files $1B shelf offering that could fuel Bitcoin buys
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Source: cointelegraph.com
