Bitcoin (BTC) added 0.97% on Monday to return above $65,000, but the coin remains in danger of losing its position very quickly if economic factors shift.
There is little stability for Bitcoin at its new price point of $65,087 (BTC/USD). Even after climbing over the last day, the coin is volatile but trending slightly upward. Trade volume rose 84% over the past 24 hours, indicating intensive interest and the possibility that the bulls will take control of Bitcoin and push it much higher this week.
BTC/USD
Last week, Bitcoin stayed locked down between $63k and $66K, trading in a relatively tight range and waiting for influencing factors to push it in one direction or another. Meanwhile, Bitcoin ETFs slipped further from their previous inflow highs. A seven-day streak of inflows ended abruptly with two connective days of outflows totaling $465 million last week.
Bitcoin Held Back by Economic Factors
BTC buying and selling trends are heavily shaped by outside economic influences. Throughout July, much of the impetus for Bitcoin price movement has come from inflation worries, fear over the conflict in Iran, rising oil rates, and sharp losses for the tech stock sector. As these factors shift, cryptocurrency investors worry about how Bitcoin will move.
Long positions continue to be liquidated, pointing toward declining investor confidence in the coin. Since Bitcoin is still down about 50% from its all-time high back in October, the market is having difficulty holding onto gains for long. It is also running into trouble in retaining both short-term and long-term investors. They are losing patience with the coin’s slow progress and are shifting over to more promising assets.
In the last seven days, the Bitcoin price has moved marginally- only 0.37% higher. Because the coin has been so volatile, we anticipate a bigger shift this week. That move could be stirred by unrest in the Middle East as Iran and the United States continue fighting. Or it could be caused by strong stock market movements or the latest economic report, but the likelihood of a strong shift in one direction or another is increasingly likely as the week progresses.
For now, the Bitcoin outlook is a bearish one. Having spent too long down from its all-time high, the coin is likely to struggle longer and experiences extreme difficulty in climbing back up to $100K and much less its record high.
Timothy St. John
Financial Writer – European & US Desks
www.fxleaders.com