After passing the crucial $25,000 mark for the first time since June 13, Bitcoin dipped with exhaustion. The $25,000 mark remains a key resistance level for the time being.
Currently, Bitcoin is trading at $24,153. It’s down by 2.42%, as per data from CoinMarketCap. Ethereum, down by 4.24%, is changing hands at $1,909. In the last seven days, Ether has gained 10.04%, while Bitcoin gained only 1.62%. This shows that Ethereum is leveraging on anticipation of the network’s upcoming merge to a proof-of-stake (PoS) consensus.
Bitcoin’s volatility is attributed to inflation as the key economic indicator remained unchanged last month – the Federal Reserve’s interest rate hike was to tackle the rising prices. Rising inflation and the potential global recession have hit Bitcoin and the broader crypto market, as well as stocks and bonds. Investors remain cautiously optimistic about the recent economic indicators with waning inflation and a lower likelihood of inflation.
Joe DiPasquale, CEO of BitBull Capital, says Bitcoin’s resilience above $20,000 did see bulls pushing for more upside. This came about, especially after a successful retest of that range. But he said that the breakout above $25,000 is yet to be seen. If there is a successful breach, BTC could move quickly toward the $29,000 – $30,000 range. The analyst believes that the current macroeconomic uncertainties will continue to hamper Bitcoin’s future pricing. DiPasquale said it’s too early to think that the macroeconomic woes have been left behind. He outlined that August’s closing and September will be key for the crypto market on account of a few factors, this includes the next FOMC and the much anticipated Ethereum merge.
Meanwhile, bears are selling on rallies but repeated breach of overhead resistance is weakening it.