While the leading cryptocurrency Bitcoin has been trading sideways between $60,000 and $65,000 for some time, two analysis companies have shared their updated assessments of BTC.
First, Singapore-based crypto analytics firm QCP Capital noted that despite the downturn, BTC maintained its range and the focus shifted to Jackson Hole.
In their latest assessment, QCP analysts stated that weak economic data from the US has reduced pressure on the Fed to raise interest rates, but the market direction remains uncertain due to high oil prices increasing inflationary pressure.
Therefore, analysts believe that the market outlook does not yet point in a clear direction.
Bitcoin Hasn’t Broken December Yet!
QCP Capital noted that Bitcoin’s recent price movement has not generated any significant directional momentum.
At this point, analysts note that BTC fell by approximately 3% last week and traded around $63,000, failing to maintain its rise from around $64,000. According to QCP, the $62,500-$63,000 region forms the lower limit of Bitcoin’s recent trading range.
Analysts note that despite numerous pressures including geopolitical risks, high oil prices, global liquidity uncertainty, and limited risk appetite in the crypto market, Bitcoin has yet to break out of this range and continues to maintain the lower end of its recent range.
The company, which also evaluated Ethereum, added that ETH is also trading around $1,900, indicating low volatility and low bullish sentiment in the broader crypto market.
All Eyes on FED Data!
QCP Capital stated that, amid ongoing uncertainty, markets are focused on key US data to be released in the coming days.
The calendar highlights the following events in particular: “August 19 (FED July FOMC minutes), August 26 July PCE data, August 27-29: Jackson Hole Symposium, and September 15-16 FED meeting.”
QCP concluded by stating that the environment for Bitcoin and the cryptocurrency market remains balanced rather than dynamic, and that the direction in which BTC will move from its current trading range will depend on macroeconomic data, the Fed decision, and liquidity conditions to be released in the coming days.
Big Move May Be Imminent in Bitcoin!
Secondly, the German analysis company Makrovision Research shared its latest assessment.
The analysis firm noted that pressure on Bitcoin is increasing, and that the price has been moving in a narrow range for weeks.
Accordingly, for Bitcoin, $65,500 acted as resistance, while $61,000–$62,000 acted as a support zone.
“…The same thing has been happening with BTC for weeks:
$65,500 → Sellers step in
$61,000–$62,000 → Buyers defend themselves
Analysts note that BTC is getting closer and closer to both price levels, arguing that which direction the price breaks out of this narrow range is critically important.
If the price initially breaks above $65,500, it could open up potential upward movement towards $71,500, while a loss below $61,000 could trigger new low tests.
Analysts recently pointed to a significant decrease in volatility, warning that a sharp and large move in either direction is therefore approaching.
*This is not investment advice.
