With the events that occurred last week in the US, one would not have expected bitcoin to do as well as it did. The Fed raised interest rates by 75 basis points and certain indicators seem to be pointing to the fact that the economy is officially in a recession, even though the current administration has refused to admit this.
Despite this, bitcoin’s price reached $24,500 on July 30 and ended the month in the green. The slow momentum at the start of this month caused some analysts to believe that we were in a bear trap as the price dropped again below $23,000.
Today the bitcoin and crypto market was mostly trading in green despite more bad news that Solana wallets had been hacked on Tuesday night. About $5 million worth of SOL, SPL and other Solana-based tokens were taken from unsuspecting users. This did not negatively affect bitcoin which went up by 2% and reclaimed the $23,000 level.
Bitcoin is experiencing a third consecutive daily price drop and some analysts believe this could be a signal that the previous momentum it had might be dwindling. Craig Erlam, a senior market analyst with OANDA stated that bitcoin’s price action might be dependent on inflation and the hesitancy in the markets might mean that investors do not believe that the bottom is in and that good times are returning just yet. According to Ali Martinez, bitcoin is currently testing resistance and a close above $23,530 would allow it to retest the $24,400 zone.
So far the downward movement that the BTC price experienced was mostly contained within a descending wedge. Descending wedges are considered bullish patterns and leading breakouts a majority of the time.
Some analysts believe we might be in the beginning of an aggressive price move to the upside, but for this to happen we need to break out of the channel to the upside. This has already happened, so the next step is to move above the $23,400 level.
