Bitcoin drops below $30,000 as bullish run fades

Crypto markets wavered this week, failing to maintain last week’s rally. Risk sentiment was uncertain, causing volatility in cryptocurrencies. 

Bitcoin price dropped below the $30,000 level briefly on Tuesday, as last week’s bullish run faded. If the BTC price declines, support can be found near $29,600, while resistance may be encountered near $31,820. 

Ethereum price also declined on Tuesday, dropping below $1,900. If Ethereum's price declines, it may encounter support near $1,817; if it increases, resistance may be near $2,030.

Cryptocurrencies jumped last week after a US court ruling in favor of Ripple Labs Inc. A US judge ruled on Thursday that Ripple did not violate federal securities law by selling its XRP token on public exchanges. The ruling may provide support for other cryptocurrency firms fighting litigation from the Securities and Exchange Commission. Crypto markets showed signs of recovery but could not maintain bullish momentum.

Signs of cooling US inflation provide support for risk assets, boosting risk sentiment as future rate hike expectations decrease. US inflation slowed more than expected in June, weighing the dollar down and boosting risk assets. The U.S. Federal Reserve kept its interest rate steady at its June policy meeting for the first time in well over a year to a target range of 5.00% to 5.25%. 

The Fed has signaled that its tightening cycle is not over yet, however, and market odds are in favor of another rate hike in July after June’s pause. Even though US inflation cooled to 3% in June, dropping close to the Fed’s 2% goal, most analysts expect another 25-bp rate hike in July. There is, however, doubt on whether the Fed will continue hiking rates after July’s rate increase or whether July’s rate hike will be the last one this year.

BTC/USD 1h Chart

ETH/USD 1h Chart

The content provided in this material and/or any other material that this content is referred to, whether it comes from a third party or not, is for information purposes only and shall not be considered as a recommendation and/or investment advice and/or investment research and/or suggestions for performing any actions with financial products or instruments, or to participate in any particular trading strategy and cannot guarantee any profits. Past performance does not constitute a reliable indicator of future results. TopFX does not represent that the material provided here is accurate, current, or complete and therefore shouldn't be relied upon as such. This material does not take into account the reader's financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of TopFX, no reproduction or redistribution of the information provided herein is permitted.

Written by:
Myrsini Giannouli

Share the article: