“In the meantime IBIT et al. continues to gobble up btc like Super Pac-Man. Impressive given price still sub-60k after 20% drop.”
Rising investor bets on a September Fed rate cut boosted demand for BTC.
Fed Rate Cut Bets Fuel BTC Demand
On Friday, headline US producer price figures beat forecasts. However, key sub-components, signaled a possible return of disinflation.
According to the CME FedWatch Tool, the chances of a September Fed rate cut surged from 77.7% on Friday, July 5, to 96.3% on Friday, July 12.
Rising expectations of a September Fed rate cut fueled demand for BTC-spot ETFs, offsetting the German government’s BTC sales.
Despite the easing concerns about supply, investors should remain alert. Monitor real-time data and expert commentary to adjust your trading strategies accordingly. Stay informed with our latest news and analysis to manage crypto market risk.
Technical Analysis
Bitcoin Analysis
BTC remained below the 50-day and 200-day EMAs, confirming the bearish price trends.
A BTC break above the 200-day EMA would support a move to the $60,365 resistance level. Furthermore, a BTC breakout from the $60,365 resistance level could give the bulls a run at the 50-day EMA.
On Saturday, investor sentiment toward the Fed rate path and demand trends for US BTC-spot ETFs require consideration.
On the other hand, a drop below $55,000 could give the bears a run at the $52,884 support level.
With a 39.52 14-Daily RSI reading, BTC could drop below the $55,000 handle before entering oversold territory.