Bitcoin trades sideways as bears maintain slight edge

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(Kitco News) – The sideways cut in cryptocurrency markets continued on Tuesday as a drop in the U.S. consumer price index (CPI) to 4% year-over-year did little to boost activity in digital assets, which continue to be weighed down by the Securities and Exchange Commission’s apparent mission to rein in the US crypto industry.

Lower inflation had a positive impact on equities, which rose throughout the trading day as investors interpreted the lower CPI as a sign that the Federal Reserve will announce a halt to increases. rates during the Federal Open Market Committee (FOMC) this week. ) meeting.

At the close of trading, the S&P, Dow and Nasdaq all ended higher, up 0.69%, 0.43% and 0.83%, respectively.

Data provided by TradingView shows that Bitcoin (BTC) initially climbed higher after the CPI release, hitting a daily high of $26,570 before an afternoon selloff sent the top crypto tumbling to a daily low of $25,835. BTC has since rallied above the support at $26,000.

BTC/USD chart by TradingView

Bitcoin July futures prices rose in the early hours of U.S. trading, according to Kitco senior technical analyst Jim Wyckoff, who noted that otherwise there is “not much again”.

1-day Bitcoin futures chart. Source: Kitco

“The bears still have the slight overall short-term technical advantage as a slight downward price trend is still in place on the daily bar chart,” Wyckoff said. “The path of least resistance for prices is currently moving lower.”

According to the latest edition of Technical Roundup, “Bitcoin/Dollar continued to decline” with the price “making lower highs and lower lows on the weekly and daily timeframes.”

BTC/USD 1 week chart. Source: technical overview

“This is evidence of weakness,” the analysts said, which in this context can be mitigated in two ways.

“First, a break in market structure,” they wrote. “This would require a higher high on the aforementioned timeframes, meaning a break above $28,000. Second, reaching support. This would require (at the very least) price to reach the weekly level closer to $24,000.

BTC/USD 1-day chart. Source: technical overview

At present, none of these conditions have been met, meaning there is nothing that constitutes a “compelling argument for a reversal”, they said.

“Put simply, the market has gone down and it’s been mostly boring and choppy,” they wrote. “Going past staircase price action is usually a bad bet. Better setups emerge when the drift becomes impulsive, whether via an aggressive puke towards support or an impulsive high to reverse the prevailing trend.

Giving a deeper insight into their thought process behind the negative outlook, Technical Roundup said: “We cannot have strong counter-trend views in the absence of a complementary market structure or at least a strong support level to distort chances of reversal.”

Mixed performance for the altcoin market

Overall, altcoins traded in a mixed fashion, with a slightly larger proportion of the top 200 tokens trading in the green on the day.

Daily performance of the cryptocurrency market. Source: Coin360

Stella (ALPHA) was the biggest gainer for the second straight day, rising 14.33% to trade at $0.1125, followed by a 9.5% gain for Galxe (GAL) and an increase of 8.64% for Braintrust (BTRST).

The overall cryptocurrency market capitalization now stands at $1.054 trillion and Bitcoin’s dominance rate is 47.7%.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

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