While the leading cryptocurrency Bitcoin traded for a long time in a sideways range between $60,000 and $65,000, two analytics firms shared their current assessments of $BTC.
Firstly, Singapore-based crypto analytics firm QCP Capital noted that despite the decline, $BTC has maintained its trading range, and attention has shifted to Jackson Hole.
In their latest assessment, QCP analysts stated that weak U.S. economic data has reduced pressure on the Fed to raise interest rates, but the market's direction remains uncertain due to high oil prices intensifying inflationary pressure.
Therefore, analysts believe the market outlook does not yet point to a clear direction.
Bitcoin Hasn't Yet Surpassed December Levels!
QCP Capital noted that Bitcoin's recent price movement has not generated any significant directional momentum.
Currently, analysts point out that last week $BTC fell by about 3% and traded around $63,000, failing to sustain a rally from around $64,000. According to QCP, the $62,500–$63,000 range forms the lower bound of Bitcoin's recent trading range.
Analysts note that despite numerous pressure factors, including geopolitical risks, high oil prices, global liquidity uncertainty, and limited risk appetite in the crypto market, Bitcoin has so far been unable to break out of this range and continues to hold near the bottom of its recent range.
The company, which also assessed Ethereum, added that ETH is trading around $1,900, indicating low volatility and a low level of bullish sentiment in the broader cryptocurrency market.
All Eyes on Fed Data!
QCP Capital stated that amid ongoing uncertainty, markets are focused on key U.S. data to be released in the coming days.
The following events stand out in the calendar: "August 19 (FOMC July meeting minutes), August 26 (July PCE data), August 27-29: Jackson Hole Symposium, and September 15-16: Fed meeting."
In conclusion, QCP stated that the situation for Bitcoin and the crypto market remains more balanced than dynamic, and that the direction of $BTC beyond its current trading range will depend on the macroeconomic data to be released in the coming days, the Fed's decision, and liquidity conditions.
A Significant Bitcoin Move Is Quite Possible Soon!
Secondly, German analytics firm Makrovision Research shared its latest assessment.
The analytics firm noted that pressure on Bitcoin is mounting, and the price has been moving in a narrow range for several weeks.
Thus, for Bitcoin, the $65,500 level has acted as resistance, and the $61,000–$62,000 range has acted as a support zone.
"...The same thing has been happening with $BTC for several weeks now:
$65,500 → Sellers intervene. $61,000–$62,000 → Buyers defend their position.
Analysts note that $BTC is getting closer and closer to both price levels, asserting that the direction of the price breakout from this narrow range is crucial.
If the price initially breaks above $65,500, it could open a potential path towards a rise to $71,500, while a fall below $61,000 could trigger a test of new lows.
Analysts recently pointed to a significant decline in volatility, warning that a sharp and significant move in either direction is approaching due to this.
*This is not investment advice.
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