Bitcoin
and other cryptocurrencies were slipping Wednesday, but digital assets were holding most gains from a recent rally as market watchers see momentum for more to come. Wednesday holds one possible catalyst for another jump—or fall.
The price of Bitcoin slipped less than 1% over the past 24 hours to $30,750, with the largest crypto at the upper end of a recent trading range between $30,000 and $31,000. Bitcoin crossed the psychologically important $30,000 level last month on the back of optimism over new spot Bitcoin exchange-traded fund applications, but has so far failed to breach April’s high around $31,500.
“Bitcoin is showing remarkable resilience, steadfastly holding on to its $30,000 to $31,000 support line as we kick off the month of July,” said Rachel Lin, CEO of trading platform SynFutures.
On the back of its best first half of a year since 2019, when Bitcoin prices traded below $3,500, crypto market observers see more gains as likely to come.
“Bitcoin’s current trend indicates an encouraging uptrend phase, now trading at the $31,000 resistance level. Price projections for Bitcoin point towards an upward trajectory if the price can remain above the current level, potentially breaching the immediate $32,400 resistance,” said Lin. “If it breaks below $29,500, a correction toward $27,500 could be possible.”
Wednesday could bring a catalyst for the next move. Like the
Dow Jones Industrial Average
and
S&P 500,
Bitcoin may move on the back of minutes from the last policy-setting meeting of the Federal Reserve.
The Fed’s campaign of inflation-fighting interest-rate hikes were a key headwind for cryptos last year, but the central bank’s more accommodative shift in 2023—holding rates steady instead of hiking last month—has been a tailwind. Investors will scrutinize language from Fed officials amid shifting expectations of how much more the central bank might raise rates this year.
Beyond Bitcoin,
Ether
—the second-largest crypto—dropped 1% to below $1,950. Smaller tokens, or altcoins, were mixed, with
Cardano
and
Polygon
trading around flat. Memecoins were slightly firmer, with
Dogecoin
and
Shiba Inu
advancing 1%.
Write to Jack Denton at [email protected]
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