The Bitcoin 2024 conference has once again propelled BTC close to the $70,000 mark. Whales appear to be in a holding pattern, while bulls eagerly anticipate Bitcoin’s next move.
Bitcoin’s dominance has been on the rise, with the leading cryptocurrency starting the week with a robust bullish push towards $70,000. This surge is fueled by the excitement and political fervor generated during the Bitcoin 2024 conference over the weekend.
The conference significantly boosted demand, particularly for Bitcoin dominance, which has been climbing since mid-July. It reached a peak of 56.76%, just shy of a new three-year high. The last time Bitcoin dominance was this high was in April 2021, when it peaked at 57.03%.
A major Federal Reserve announcement is on the horizon, which could further influence Bitcoin dominance. The FED is set to announce its next interest rate decision on July 31st. Current market sentiment suggests that 96% of analysts expect interest rates to remain unchanged in August. If the FED were to announce a rate cut, risk-on assets like Bitcoin could see a surge in demand. However, if rates remain unchanged, the impact on asset prices may be minimal. Market sentiment is heavily in favor of a 25 basis point rate cut in September.
Bitcoin was trading at $69,503 at the time of writing, following a 1.81% rally in the last 24 hours. The key question is whether it can muster enough bullish momentum to break through the $70,000 barrier. This price point is crucial as BTC has faced resistance and renewed selling pressure above this level since March.
From a technical perspective, a move above $70,000 could push BTC into overbought territory, according to the RSI. The MACD already indicates that bullish momentum is slowing. These factors, combined with the upcoming resistance zone, suggest a potential pullback driven by short-term profit-taking. However, the long-term outlook remains bullish, especially in the wake of the Bitcoin conference, which has bolstered confidence across various markets.
For instance, Japanese firm Metaplanet has reportedly purchased Bitcoin worth over 1 billion Yen. Metaplanet’s stock has surged by over 1,300% this year, with significant gains occurring in July as the company increased its Bitcoin holdings. At the time of writing, it held 246 BTC. While this indicates some market confidence, Bitcoin’s ability to surpass its current resistance zone will depend on sustained demand above these levels.
Bitcoin’s large holder netflow to exchange netflow ratio suggests that whales are not moving significant amounts of their funds at this time. Monitoring this indicator will be crucial in assessing potential flows that could impact Bitcoin dominance and price in the coming days.
