Bitcoin (BTC) is showing signs of challenging range highs as fresh macroeconomic data boosts the confidence of risk asset bulls. The cryptocurrency’s price focus has shifted above $30,500, indicating a potential upward momentum. The release of the United States Producer Price Index (PPI) numbers, which came in below expectations, has aided in lowering inflation forecasts. However, despite the positive data, the market still anticipates another interest rate hike by the Federal Reserve.
Analysts believe that the declining inflation and the positive macroeconomic data have had a direct influence on the rebound of the BTC price. Caleb Franzen, a senior market analyst at Cubic Analytics, explains that the disinflation trend has contributed to the rise of asset prices, including Bitcoin, which has seen an 86% increase year-to-date. The positive sentiment surrounding Bitcoin has been further bolstered by the news of Europe’s first Bitcoin spot exchange-traded fund (ETF) launching later this year.
Bitcoin traders and analysts are increasingly optimistic about the cryptocurrency’s future. Michaël van de Poppe, founder and CEO of trading firm Eight, believes that Bitcoin will continue to hold above the $30,200 level and could potentially break out to reach $38,000. However, there is also a downside risk, with a support level of $29,300 in case the $30,000 level fails to hold.
While the range for Bitcoin’s price remains stubbornly in place, many traders anticipate a return to the upward trend. Skew, a popular trader, suggests that a breakout from the range is imminent. Jelle, another trader, is closely monitoring a triangle formation just below the “key” resistance level of $31,000.
Bitcoin’s price is showing signs of potential growth as fresh macroeconomic data boosts confidence in risk assets. The declining inflation and positive market sentiment have contributed to the cryptocurrency’s rebound. With the anticipation of another interest rate hike by the Federal Reserve and the launch of Europe’s first Bitcoin spot ETF, traders and analysts are optimistic about Bitcoin’s future. However, there is still uncertainty around the range and the potential breakout, with traders closely monitoring key support and resistance levels.
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