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Highlights
- Bitcoin price wipes gains after less-than-forecasted FOMC announcement.
- Bitcoin's fear and greed index is 74, showing the market is greedy at the moment.
- BTC supply on exchanges fell to below 940,000, the lowest recorded since 2021.
Bitcoin price analysis: BTC price spiked on June 12 after Senator Elizabeth Warren wrote a letter to the Federal regulators asking them to cut rates. Bitcoin price later cooled down after the FOMC press release revealed rates would remain as they were. BTC price dropped right back to pre-FOMC lows.
The price of Bitcoin hovered around $66,736 during European business hours on Friday, a 1.3% drop in 24 hours, and a further 6.1% decrease in 7 days per CoinGecko data.
Bitcoin Price Analysis: Can Bulls Bounce Off This Key Support?
BTC price action has been choppy for the most part of the past 30 days. Nevertheless, the asset continues to trend above the 50-day and 200-day simple moving averages (SMA), indicating some bullish sentiment from the market. The price action is currently at the 50-day SMA, which coincides with a major support structure around the $66,000 level. This is a strong resistance-turned-support, tested up to 5 times in the past two months.
This is the last level of defense for bulls and they can hold it, BTC price can bounce off it and make $72,500. If the bulls are unable to win the fight, Bitcoin price may find support around $60,000 and $57,000 (200-day SMA).
On the macro-scale, the weekly Bitcoin price chart shows an extremely bullish market structure—a bull flag with a possible upside potential of 66% if it resolves upward. The Fibonacci retracement tool shows price action touched the 0.5 retracement level in April when Bitcoin price crashed to a low of $56,500.
Bitcoin Fundamentals Fueling Market Greed
Data from Alternative, a market sentiment analysis firm, shows the market is greedy about Bitcoin investment. This means investors are still rushing in to buy more Bitcoin and are of the opinion there may be more upside for the king of cryptos.
Despite the lagging price, Bitcoin fundamentals have never been stronger, and this may have fueled the greedy market sentiment.
In the meantime, data from Santiment, an on-chain analysis firm, shows Bitcoin supply on exchanges fell to below 940,000, the lowest recorded since 2021. This signals that investors are bullish on the asset and are not in a hurry to sell any time soon.
MicroStrategy has also begun raising $500 million through convertible senior notes in order to buy more Bitcoin. With over 214,000 BTC already in its possession, it remains the largest Bitcoin-holding public company in the world.
Bottom Line
The impact of financial regulators in the crypto markets has been decreasing over time and as witnessed on Wednesday, it is at its all-time low, especially for Bitcoin. Good news associated with economic interest rates only resulted in a 4.5% pump. This may indicate that crypto is decoupling from political and traditional regulations.
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