Bitcoin Sheds Late June Gains as Warnings Persist About $60K Support
Bitcoin’s price is reverting to levels seen before last weekend’s surge, with liquidity gathering below the $60,000 mark.
Current Market Situation
On July 3, Bitcoin traded at around $61,000, following a dip triggered by a worsening inflation outlook in the United States. Data from Cointelegraph Markets Pro and TradingView showed Bitcoin’s price attempting to recover from a 2% decline at the daily close, resulting in local lows of $60,561 on Bitstamp.
Impact of Federal Reserve’s Outlook
The decline was exacerbated by comments from Jerome Powell, the chair of the U.S. Federal Reserve, who spoke about the economy and monetary policy in Portugal. Powell indicated that more evidence was needed to justify lowering interest rates, a move closely watched by crypto and risk asset investors. This sentiment caused markets to slightly lower the odds of a rate cut at the Fed’s September meeting, with current probabilities around 65%, according to the CME Group’s FedWatch Tool.
Source: CME Group
Market Reactions and Analysis
Bitcoin’s price returned to familiar lower levels, frustrating market participants. Skew, a popular trader, highlighted manipulative liquidity moves on exchanges through order “spoofing,” creating and removing overhead resistance multiple times. On Binance, spot demand was noted at $60,000 and lower.
Additionally, Bitcoin filled the latest “gap” in CME futures caused by the weekend’s price surge. Charles Edwards, founder of Capriole Investments, expressed concern about the current price action, noting that the market hasn’t yet accounted for the ongoing capitulation phase among miners.
Future Predictions
Edwards suggested two potential scenarios for Bitcoin’s price movement. It could either consolidate between $60,000 and $70,000 for up to two months or face a significant correction, reflecting the unresolved miner capitulation phase.
Source: LookIntoBitcoin
Bitcoin’s path forward remains uncertain as it balances between recovery efforts and underlying market pressures.
