Home CryptoCurrency News Bitcoin Price Outlook for July — Traders Remain Concerned About Upcoming Fed Rate Hike and Bankrupt Crypto Firms
CryptoCurrency News - July 8, 2022

Bitcoin Price Outlook for July — Traders Remain Concerned About Upcoming Fed Rate Hike and Bankrupt Crypto Firms

Bitcoin Price Outlook for July — Traders Remain Concerned About Upcoming Fed Rate Hike and Bankrupt Crypto Firms

During the first week of July, bitcoin prices have risen to their highest level since mid-June, coming as U.S. Non-Farm Payrolls handsomely beat expectations. However, as we head into the remaining weeks of the month, questions still linger on if this momentum can be maintained, despite the current uncertainty in the market.

Bitcoin’s Current Market Status

Looking back at June, bitcoin (BTC) started the month trading around the $30,000 mark, however exactly four weeks ago today, prices fell significantly, with markets still yet to recover from this drop.

Between June 8th – 18th, BTC/USD went from a peak of $31,600, to a floor of $17,612, coming as inflation in the U.S. continued to rise at historic levels.

This forced the Federal Reserve to once again hike rates, increasing them by as much as 75 basis points in hopes of curving spending.

The hike somewhat helped boost market confidence, with traders opting to buy June’s dip, however, for the most part, prices have been trading below $21,000.

However, following five consecutive days of gains, BTC is trading close to the $21,800 level, which is marginally lower than today’s high, which was nearer to a key resistance point.

Although there was an earlier breakout, prices are now below this hurdle, with volatility once again higher, leaving many traders uncertain about how the remainder of the month will pan out.

Stories of severe multi-million-dollar liquidations, alleged insolvencies, and bankruptcies have crypto traders on edge.

The upcoming Fed rate hike and more crypto firms experiencing negative exposure to insolvent crypto entities continue to add fear to the market sentiment.

Bitcoin’s July Outlook

This false breakout came at the resistance level of $22,070, which has historically been a point of uncertainty.

As a result of this, bulls opted to secure profits, rather than attempt to push prices of the leading crypto token higher.

Looking at the chart below, this coincides with the relative strength index (RSI) indicator trading close to a resistance level of its own at 48.30.

Bitcoin Price Outlook for July — Traders Remain Fearful With Upcoming Fed Rate Hike and Bankrupt Crypto Firms
BTC/USD price chart

Bulls are likely waiting for the momentum indicator to move past this point before reentering with any real show of force.

If they do, they will likely use the remaining weeks of the month to get closer to the $30,000 region, recovering some of the losses of the past few weeks.

Many expect the Fed to once again increase interest rates by another 75 basis points, and should this happen, plus inflation begins to slow, then investors may see current lows as an opportune point of entry.

However, with price strength mostly trading under this current ceiling for the past three months, bears will also be waiting to enter the fray, targeting a move back below $19,000 this month.

Tags in this story
Analysis, Bitcoin, BTC, Federal Reserve, Outlook

What do you think about bitcoin’s price action in recent times and the July outlook for the leading crypto asset? Do you expect bitcoin to rise higher or drop lower from here? Let us know what you think about this subject in the comments section below.

Eliman Dambell

Eliman brings a eclectic point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX.

Biggest Movers: MATIC Rises for 5th Straight Session, While AAVE Is up Nearly 10%

Bitcoin, Ethereum Technical Analysis: BTC Surges Above $22,000 Ahead of NFP Report

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. bitnews.gold does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimer
Show comments


Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

Not The 2018 Bear Market, Bitcoin Price Could Hit $20,000 In December

The Bitcoin price rebounded off the low of its current range and retraced its weekend loss…