Bitcoin Struggles Around $60,000 Price Level: Here’s Why

Bitcoin Struggles Around $60,000 Price Level: Here’s Why

Bitcoin continues to trade around the $60,000 level, with BTC bears making efforts to prevent the cryptocurrency from surpassing this critical threshold. Bitcoin (BTC) edged closer to $60,000, with bulls making efforts to help it maintain key trendline support. Data from TradingView indicated that BTC/USD reached highs of $59,459 on Bitstamp, reflecting a 1.5% gain during the Asia trading session.

RSI and Key Levels for Bitcoin Price

This surge came after Bitcoin found support at classic “oversold” conditions, with the relative strength index (RSI) reaching its lowest levels in ten months. Notable trader, Daan Crypto Trades, highlighted the bullish divergences on the daily RSI, suggesting that a significant breakout on the daily RSI could be imminent.

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Fellow analyst Rekt Capital confirmed that the RSI divergence was indeed “playing out” as key price levels became focal points. Daan Crypto Trades identified $59,000 as a crucial level for Bitcoin to reclaim. Conversely, other analysts pointed to $58,400 as a significant threshold. Trader Justin Bennett predicted that reclaiming $58,400 could lead to a retest of the $60,000-$60,700 range.

Impact of Macroeconomic Data

Meanwhile, the upcoming US macroeconomic data, specifically the Producer Price Index (PPI) and the Consumer Price Index (CPI), will likely have a substantial impact on Bitcoin’s market performance. The latest data from CoinGlass revealed that liquidity at the $60,000 level was thin but increasing.

As Bitcoin’s price pushed higher, the majority of liquidity at this level was cleared, indicating a build-up in selling pressure. Bitcoin is struggling to break out of a 1.5-month downtrend.

The interplay between the 99-day and 200-day moving averages will be crucial in determining Bitcoin’s near-term direction. Should Bitcoin manage to sustain its current momentum and break past the resistance, it could set the stage for a significant upward movement. Conversely, failure to do so might result in a renewed decline.

Bitcoin ETFs Record $654M Inflows in 3 Days

The US spot Bitcoin ETFs experienced an influx of funds totaling $654 million over three trading days since July 5, signaling robust investor confidence despite turbulent market conditions. On July 9 alone, net inflows across all US spot Bitcoin ETFs reached $216.4 million, equivalent to 3,760 BTC.

BlackRock’s iShares Bitcoin Trust led the pack, drawing in $121 million, followed by Fidelity’s Wise Origin Bitcoin Fund with $91 million. These inflows are part of a broader trend of $294.8 million in inflows on July 8 and $143.1 million inflows on July 5, driving the total to $654 million.

This surge in ETF investments comes at a critical time for Bitcoin. Since July 4, Bitcoin’s price hasn’t surpassed $60,000 and is currently trading at $57,559 per on-chain data, reflecting a near 18% decline over the past month.

Impact of Germany’s Bitcoin Sell-Off

Despite the positive inflows into US Bitcoin ETFs, the market still faced bearish pressures from Germany. Since July 5, Germany Bundeskriminalamt’s (BKA) wallet has offloaded Bitcoin worth over $850 million, significantly impacting the market.

The BKA’s stash was the nearly 50,000 Bitcoin it seized in mid-January as part of an investigation into a movie pirating website, Movie2k. According to Arkham Intelligence, the BKA’s Bitcoin wallet currently holds 23,960 Bitcoin, valued at approximately $1.4 billion, down from the initial 50,000 Bitcoin seized.

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Rudy Harris
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Rudy Harris

Rudy Harris, a dynamo in crypto journalism, intricately unpacks the multifaceted world of digital assets. Renowned for his analytical depth and clear exposition, Rudy's articles serve as an essential compass for those navigating the intricate corridors of blockchain and cryptocurrency, solidifying his stature as a trusted expert.

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