Financial markets continued to fluctuate on Tuesday. In the next three days, multiple macro policy data will be released in a cluster, and the Federal Reserve , the Bank of Japan and the Bank of England will announce key interest rate decisions.
The Bank of Japan is the first to decide on Wednesday (Tuesday night U.S. time), and analysts are divided over whether the central bank will raise its policy rate from the current 0%-0.1% or signal an imminent hike. Japan’s inflation rate has been above its 2% target for some time, and the yen, despite recent gains, is still hovering near multi-decade lows against the dollar .
Next up is the Fed’s decision on Wednesday afternoon, Eastern Time. CME FedWatch data shows that traders are betting that the U.S. central bank will keep interest rates unchanged this time, but the market’s expectations for a rate cut in September have reached 100%. Fed Chairman Powell’s press conference on Wednesday will be closely watched, with the focus on the timing and number of rate cuts this year.
The Bank of England will announce its policy decision early Thursday afternoon, with economists and interest rate markets roughly evenly split on whether the central bank will ease policy for the first time in several years. Moreover, even if the Bank of England does cut rates, it may be a sign of a very cautious approach, suggesting to markets that a series of easing policies should not be expected.
Bitpush data shows that Bitcoin bulls tried to hold the $66,800 support level, but failed in the early morning, causing a drop to a low of $65,526 after midday, and bears sought to test the strength of the $65,000 support level. As of press time, the Bitcoin trading price rebounded to $66,316, a 24-hour drop of 1.66%.
The Altcoin market fell across the board, with only three of the top 200 tokens by market cap rising by more than 4%.
Compound (COMP) had the largest increase, up 7.3%, followed by BinaryX (BNX) up 6.7% and Book of Meme (BOME) up 5.6%. Flux (FLUX) had the largest decrease, down 9.4%, Raydium (RAY) down 9% and Jupiter (JUP) down 8.6%.
The current overall market value of cryptocurrencies is $2.35 trillion, with Bitcoin accounting for 55% of the market share.
In the U.S. stock market, the major stock indexes opened higher, but the S&P and Nasdaq fell before midday due to weak earnings reports and the continued rotation of small-cap stocks . As of the close of the day, the Dow rose 0.50%, the S&P and Nasdaq fell 0.50% and 1.28% respectively.
About $800 million worth of BTC futures open interest has been closed
Commenting on Bitcoin’s latest price action, well-known trader Skew noted that about $800 million worth of BTC futures open interest (OI) had been wiped out after Bitcoin fell below $70,000. He said: “It appears that the late-stage long-term deleveraging action has been completed, with about 12K BTC or $802 million of OI liquidated.”
Open interest refers to the total number of open BTC-related derivative contracts on all exchanges.
According to Skew, spot selling is responsible for the sell-off and the market needs to see an increase in leveraged long positions and spot buying to reclaim the weekly opening price of $67,500.
Trader Daan Crypto Trades noted that long liquidations on BTC stuck at $69,000 have led to a “massive drop in open interest.” Like Skew, Daan Crypto Trades believes that spot activity will help determine the direction of the market.
“I think we’re going to see more volatility,” Daan Crypto Trades said.
New highs are only a matter of time
A survey of cryptocurrency analysts shows that although Bitcoin is struggling to break through the $70,000 resistance level, it is only a matter of time before a growing number of positive factors push it to a new all-time high and enter price discovery mode.
Market analyst Rekt Capital said on the X platform: “Bitcoin is still expected to break out in September. History shows that it is unlikely to break out of the re-accumulation range only about 100 days after the halving.”
Offering a more detailed view, market analyst Arman Shaban Trading believes Bitcoin will stabilize within its current range before moving higher.
He said: “By analyzing the Bitcoin chart on the weekly timeframe, we observed that after entering our target supply zone, the price experienced an initial correction and fell to $63,500. Subsequently, it encountered increased demand and was able to rise to $70,000 yesterday.”
ArmanShabanTrading added: “As we all know, $70,000 is an important psychological resistance level, so the price has reacted to it and is currently trading around $66,600. We need to see if the price can stabilize above the $62,700 to $63,500 support level. If it stays above this support level, we can expect Bitcoin to rise further, with the next targets being $72,000, $73,777, and $77,000.”
Author: BitpushNews Mary Liu
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