Has Bitcoin hit its lowest point Signals indicate that the worst may be over for BTC
The beginning of this week saw a notable decline in the cryptocurrency market, driven by concerns about macroeconomic factors and the price movement of Bitcoin (BTC). However, recent indicators are pointing towards a more positive outlook for Bitcoin and other cryptocurrencies, provided that the Consumer Price Index (CPI) data and interest rates align as expected.
BTC found support within its narrow price range at $66,000, an area identified earlier by Finbold. A technical analyst had previously highlighted this level as an opportune entry point for Bitcoin, a prediction that has since materialized. Despite this, Bitcoin is currently trading at $67,875, slightly below the 30-day exponential moving average of $67,957. Additionally, a significant resistance level at $72,000 is likely to be a key focus in the coming days.
According to cryptocurrency trader and analyst Ali Martinez, approximately $1 billion worth of Bitcoin has been withdrawn from crypto exchange reserves in the past 48 hours, totaling 14,140 BTC. This movement suggests a positive sentiment and bullish bias among investors as they acquire and secure Bitcoin.
On the social front, there have been signals indicating a potential bottom related to outflows from Bitcoin ETFs. Data from Santiment collected by Finbold shows a correlation between peaks in mentions of “ETF outflow” on social media and Bitcoin price bottoms. Recent activity suggests a resurgence in these mentions, with some ETFs experiencing outflows of $200 million.
Despite these positive indications, retail demand for BTC has declined by 17%, accompanied by low spot trading and on-chain transaction volumes for Bitcoin. Nevertheless, technical analysts remain optimistic about the potential for Bitcoin to reach $100,000 per coin, a psychological milestone that could fuel a price surge.
There is a note of caution regarding today’s FOMC meeting and the release of CPI data, as worse-than-expected results could undermine the current positive outlook for Bitcoin. Market expectations are for a 3.5% Core CPI year-over-year (YoY) and a 3.4% YoY CPI, with any deviation from these figures likely to impact the markets.
In conclusion, while there are encouraging signs of a bottom forming for Bitcoin, investors and traders in the cryptocurrency space should remain vigilant and exercise caution given the potential impact of upcoming economic data and events.
