BTC Falls to Lowest Level. As Bitcoin (BTC) trades at $64,295, its lowest monthly level, predictions about its future value are in the spotlight. Bitcoin (BTC) prices have been under pressure due to recent net outflows of $139.88 million from US spot Bitcoin ETFs. In contrast to BlackRock’s IBIT, which experienced a net inflow, Grayscale’s GBTC and Fidelity’s FBTC both witnessed significant outflows. Furthermore, market movements may impact the future levels of support for Bitcoin, depending on economic statistics and Fed policy predictions.
US Spot Bitcoin ETFs and Market Evolution Affect BTC Prices
For five days, $139.88 million has been drained from US spot Bitcoin ETFs. Many funds left Fidelity’s FBTC and Grayscale’s GBTC, totaling $53 million and $51 million, respectively. On the other hand, BlackRock’s investment business brought in $1 million. After reaching $1.7 billion earlier in the week, the overall trading volume for these ETFs dropped to $1.16 billion.
In other news:
- Australia’s ASX listed its first spot in Bitcoin ETF.
- US issuers are preparing to launch spot Ethereum funds and will resubmit forms to the SEC by Friday.
The selling of ETFs and decreased trading volumes have brought down the price of bitcoins. On the other hand, imminent Ethereum funds and institutional trust might offer support and reduce heavy losses.
Also Read: Bitcoin Price Rises Despite Declining US CPI
Economic Data and Fed Expectations Influence Bitcoin Prices
Expectations that the Federal Reserve will soon start relaxing its policies have been reinforced by disappointing US economic statistics, which has helped to limit Bitcoin’s losses. Despite the Fed’s initially aggressive posture, markets are now bracing for a potential interest rate reduction at the policy meeting in December.
Neel Kashkari, president of the Minneapolis Federal Reserve, has indicated that returning inflation to the 2% objective could take a year or two. The significance of remaining attentive to economic data and the willingness of the Federal Reserve to address policy challenges using available instruments were both stressed by Tom Barkin, president of the Richmond Fed.
Key data points include:
- Unemployment benefits dropped to 238,000 for the week ending June 15, slightly above expectations of 235,000.
- Housing Starts decreased by 5.2% in May to an annual rate of 982,000 units, and Building Permits fell 2.9% to 949,000 units.
- The Philadelphia Fed Manufacturing Index fell to 1.3 in June from 4.5 in May.
- On Friday, at 13:45, USD Flash Manufacturing PMI rose to 51.7, and Services PMI increased to 55.1.
- 14:00 Existing Home Sales reached 4.11M, slightly above the 4.08M forecast.
This more robust economic data supports the USD, which can put downward pressure on Bitcoin as investors may favor traditional assets over cryptocurrencies.
MicroStrategy’s Major Bitcoin Acquisition and Its Impact
MicroStrategy bought 11,931 Bitcoins for $786 million from April 27, 2024, to June 19, 2024, significantly increasing its Bitcoin holdings. BTC Falls to Lowest Level: With the proceeds from a private sale of convertible senior notes that brought in about $800 million, the business could buy Bitcoin for an average price of $65,883.
With an average purchase cost of around $36,798 per bitcoin (including all fees), MicroStrategy currently holds 226,331 bitcoins valued at $8.33 billion. Bitcoin remains a pillar of MicroStrategy’s financial strategy, and this strategic step further demonstrates that commitment. Bitcoin sentiment could be lifted by this major acquisition by MicroStrategy, which was financed by convertible notes. It shows how confident institutions are in BTC and could help keep its value stable even when markets are volatile.
Bitcoin Price Prediction
The current price of Bitcoin (BTC/USD) is $64,295, reflecting a small gain of 0.02%. The green line represents the critical pivot point at $64,650 and will be a deciding factor in the following directional move. If Bitcoin price candles continue to close below this level, it could indicate a bear market. We see immediate resistance levels at $65,139, $65,568, and $65,581. If Bitcoin tries to advance, these resistance points show where selling pressure could come from.
BTC Falls to Lowest Level: Regarding the downside, $64,290 is an immediate support level, with $63,437 and $62,870 providing further support. Buying opportunities may arise at these support levels if the price drops. At its present level of 42.55, the Relative Strength Index (RSI) indicates no discernible trend. The market sentiment is pessimistic, with the current price below the 50-day Exponential Moving Average (EMA) at $65,568 (a bearish indicator).
A selling tendency is more likely now that the symmetrical triangle pattern has been broken. According to the technical indicators and the present price action, a sell position below $64,650 is suggested to take advantage of the expected downward movement.
Conclusion
Below the pivot point of $64,651, selling pressure may dominate Bitcoin’s technical setup. Traders should regularly monitor the support and resistance levels to make well-informed judgments. Price action below key moving averages (50-day EMA and neutral RSI) lends credence to a pessimistic mood. Given the present market conditions, it could be beneficial to sell below $64,650.
