Bitcoin Starts to Recover

After a three-day correction, Bitcoin started showing signs of a rebound on Friday, potentially setting the stage for a bullish weekend, though confirmations are still pending at this point.

As of writing, the BTC/USD price is at $68,600, reflecting a 1% increase over the past 24 hours and a 3% rise over the week. This performance is modest compared to Ethereum, the second-largest cryptocurrency, which, despite losses since yesterday, remains up 20% over the week.

Ethereum ETF and Fed’s Hawkish Stance Impact Bitcoin Ahead of PCE Index Release

It’s important to remember that the surge in the crypto market, including Bitcoin, on Monday and Tuesday morning was driven by the anticipation of Ethereum ETF approvals. This led Bitcoin to reach $72,000, its highest level in six weeks.

However, profit-taking by investors caused Bitcoin to correct to a low of $66,300 on Thursday. This drop followed the actual approval of Ethereum ETFs by the SEC, although these ETFs won’t be available for trading for several weeks. This is a classic case of the market “selling the news after buying the rumor.”

Bitcoin was also impacted by the macroeconomic environment, particularly due to several hawkish comments from Fed members, including those in the Minutes of the latest FOMC meeting released on Wednesday evening.

Looking ahead, the fate of Bitcoin and cryptocurrencies will largely hinge on the macroeconomic context. Next week, the release of the PCE price index, the Fed’s most crucial inflation measure, will be pivotal. This data will shape expectations for the upcoming Fed meeting. Currently, the market is pricing in a just under 50% probability of a Fed rate cut in September.

The BTC trend remains bullish, but significant obstacles are limiting its upside potential.

From a technical analysis perspective, the upward trend that Bitcoin started at the beginning of the month remains intact. However, the cryptocurrency’s failure to maintain a position above $70,000 casts a shadow over this positive outlook.

BTC trend

In the short term, the key thresholds to watch for Bitcoin are $70,000 and $72,000 as the first two resistance levels, followed by $73,000, and the all-time high of $73,800 set on March 14.

On the downside, this week’s low, just above $66,000, serves as the initial support level. Beyond that, the zone around $65,000 and the 100-day moving average, currently at $64,400, are critical. If these levels are breached, BTC could target $60,000.

To summarize, while Bitcoin’s trend remains technically bullish, the significance of the $70,000 resistance zone and the potential impact of the PCE index release next Friday should encourage caution.

In this context, it might be prudent to explore other complementary opportunities, such as pre-sale cryptocurrencies that are not yet widely known but show promise for the future.

This BTC training platform is transitioning to Web3 and introducing its own token, $99BTC.

In this regard, the 99Bitcoins project has recently gained attention. Not only was its presale a significant success, but it also offers a tangible value proposition, unlike many purely speculative tokens.

99Bitcoins, a BTC learning platform established in 2013, has decided to transition to Web3 by creating its own token, $99BTC. This token primarily functions as an access token, providing holders with exclusive benefits on the website.

Additionally, the token is integrated into the project’s “learn-to-earn” system, which rewards users for their academic progress. Moreover, 99Bitcoins offers a high-yield staking program, making it an attractive option for generating passive income.

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