Coinspeaker
Bitcoin Price Gets Rejected at $59K amid Increased Crypto Capitulation Fear
As the German government intensified its Bitcoin (BTC) sales in the past few days, the fear of further crypto capitulation has dramatically increased. Bitcoin’s fear and greed index dropped to the lowest level in the past year of about 25 percent on Friday.
Furthermore, Bitcoin price is on the cusp of confirming a macro double top reversal, bolstered by the weekly bearish divergence on the Relative Strength Index (RSI).
Notably, Bitcoin price has consistently closed below the neckline of the double-top reversal, thus signaling a possible downside in the near term. Additionally, the flagship coin has failed to recover the 200-day Moving Average (MA) as a support level.
Bitcoin Whales Increases On-chain Activity
In the past few weeks, it has become more evident that Bitcoin price had reached a local top of around $73k, thus signaling an intensified midterm correction. With the understanding that Bitcoin is a long-term insurance digital asset, on-chain data shows that institutional investors and long-term traders have intensified their BTC accumulation pace.
Institutions and large holders are buying #Bitcoin heavily pic.twitter.com/AmlhYJb6xT
— Quinten | 048.eth (@QuintenFrancois) July 11, 2024
As Coinspeaker explained before, the demand for US spot Bitcoin ETTs is gradually increasing after registering more than $700 million in cash inflows over the past four days. On Thursday, the US spot Bitcoin ETFs registered a total cash inflow of about $78.93 million, led by BlackRock’s IBIT and Fidelity’s FBTC.
Meanwhile, the German government continued to offload its Bitcoin holdings and currently holds about 6.39K BTCs worth about $365 million. The Bitcoin industry has demonstrated its maturity status after comfortably absorbing nearly $2 billion in sustained sales from Germany’s government without a major capitulation.
Economic Outlook
On Thursday, the United States Bureau of Labor Statistics released the monthly and annual report on the consumer price index (CPI), which signaled easing inflation. Notably, the annual and the monthly CPI data come in lower than expected, thus putting the US inflation at 3 percent, 1 basis point higher than the target of 2 percent.
As a result of the positive news, which represents the lowest readings since early 2021, the odds for an interest rate cut in September have since increased. Major prediction markets suggest the odds of a September interest rate cut increased to 80 percent from 65 percent before the CPI data.
Furthermore, the European Central Bank and the Bank of Canada have already initiated respective interest rate cuts in the recent past.
Midterm Targets for BTC Price Action
From a technical standpoint, Bitcoin price is facing an uphill battle in the coming few weeks. The flagship coin must consistently close above $61K to invalidate possible capitulation towards the next liquidity range between $40K and $50K.
However, Bitcoin price cannot afford to consistently close below $40K in the near term if the $100K target by the end of this year is to be achieved.
Bitcoin Price Gets Rejected at $59K amid Increased Crypto Capitulation Fear
