Future

Bitcoin

Strong

Spot

<a href="https://bitcoinworld.co.in/is-a-big-bitcoin-bounce-coming-btc-price-approaches-key-long-term-support-zone/" title="Is a Big Bitcoin Bounce Coming? BTC Price Approaches Key Long-term Support Zone" rel="noopener noreferrer nofollow"></a> 
Technical Indicators Point to Near-Term Bounce 
The world’s largest cryptocurrency is poised for a potential near-term bounce as it approaches a critical support zone. Despite an uncharacteristically subdued July, the spot price of Bitcoin hovers around $29,300, marking an 8% decline from the yearly highs and a 4% dip for the month. The coin has been holding above its 50-Day Moving Average (DMA), but short-term technicals suggest a minor downside might be in store after breaking below its prior multi-week range. 
Promising Support at $28,500 
If Bitcoin were to dip into the $28,000s, it would encounter a significant long-term support zone around $28,500. According to technical analysts, this area holds the late May high, 100DMA, and the uptrend for 2023, making it a pivotal risk-reward area for adding to long positions. 
Strong Fundamentals Back the Case for a Recovery 
Fundamentally, there are reasons to support the argument for a bounce and a potential recovery to fresh yearly highs: 
Spot Bitcoin ETF Applications: The wave of spot Bitcoin ETF applications made by Wall Street giants has the potential to drive enthusiasm and institutional adoption. BlackRock, the world’s largest asset manager, and others expressing interest in Bitcoin could change the SEC’s stance on approving such applications. 
US Economic Data: Recent US economic data points toward a favourable scenario, with inflation falling toward the Fed’s target while the economy remains robust. This “goldilocks scenario” could lead to favourable tailwinds for Bitcoin due to its historical correlation with US stocks. 
Fed’s Tightening Cycle: The potential scenario of the Fed’s tightening cycle ending while the US economy avoids a recession bodes well for risk assets, including Bitcoin. 
Macro Environment: With interest rates possibly peaking and liquidity conditions easing, the overall narrative favours cryptocurrencies. 
Potential Hurdles Ahead 
While the positive outlook seems promising, there are some potential hurdles to consider: 
Safe-Haven Demand Easing: A Goldilocks economic scenario eases concerns over bank crises, reducing safe-haven demand for Bitcoin and prompting some investors to take profits. 
Market Volatility: There is no guarantee that Bitcoin will find support if it reaches the mid-$28,000s. The market’s unpredictability could see a downside break of the 2023 uptrend, challenging bullish predictions. 
Looking Towards the Future 
Despite the uncertainties, the overall macro environment and growing institutional adoption optimism offer a positive outlook for Bitcoin ahead of the 2024 halving. Historical trends indicate that halvings have led to significant price run-ups, suggesting a potential Bitcoin price in the $100,000s by next year. 
In conclusion, Bitcoin’s journey through 2023 holds challenges and opportunities, with technicals and fundamentals aligning for a potential near-term bounce and a bright future. As the cryptocurrency market evolves, investors and enthusiasts eagerly anticipate the next chapter in the story of digital currencies. 
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The post <a rel="noopener noreferrer nofollow" href="https://bitcoinworld.co.in/is-a-big-bitcoin-bounce-coming-btc-price-approaches-key-long-term-support-zone/">Is a Big Bitcoin Bounce Coming? BTC Price Approaches Key Long-term Support Zone</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://bitcoinworld.co.in">BitcoinWorld</a>.

Is a Big Bitcoin Bounce Coming? BTC Price Approaches Key Long-term Support Zone

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