PANews reported on July 29 that the latest report from Bitfinex Alpha stated that Bitcoin is unstoppable. Despite a brief pullback in the middle of this week and some strong resistance, it still broke through the $70,000 mark on Bitfinex today (July 29). Bitcoin has rebounded more than 30% since its low on July 5, which was previously predicted to be a local bottom. This upward momentum coincides with the 2024 Bitcoin Nashville Conference. The implied volatility of the Bitcoin options market also initially soared, but later fell back as traders reduced risks. With a large number of options set to expire on Friday, August 2, some calm returns to the market may indicate that prices will enter a period of consolidation or a small correction.
In fact, despite the breakout of overhead resistance, there was a clear sign of net selling in the market last week as profit-taking weighed on the market, while the gradual distribution of Bitcoin to Mt. Gox creditors also played a role. However, the market absorbed this well, indicating that stronger forces are stepping in. Moreover, the current realized price for short-term holders is $65,700, which acts as solid support. The futures market has also witnessed a surge in open interest, indicating that leverage is playing a role again. Despite the sell-off in the spot market, leveraged longs have been supporting prices. Looking ahead, the next move of the market will be crucial. The recent decline in implied volatility and the increase in leveraged positions suggest that stagnation or range trading may occur in the short term. With key support levels holding and bullish momentum building, Bitcoin is set to have an intriguing week.
The U.S. economy showed stronger-than-expected growth in the second quarter of 2024, with gross domestic product (GDP) increasing at a 2.8% annualized rate, exceeding expectations. This growth was driven by notable consumer spending and business investment, highlighting the resilience of the economy. Inflationary pressures also eased, with moderate increases in commodity prices as lower commodity costs offset higher service prices, further strengthening the likelihood of a September rate cut by the Federal Reserve. However, the housing market remained a drag on economic growth, with existing home sales falling more than expected as median home prices hit a record high. Nonetheless, rising supply and falling mortgage rates offer hope for a potential rebound. Overall, the economic outlook is cautiously optimistic, with the prospect of solid growth, easing inflation, and potential improvements in the housing market.
