Originally published on: July 31, 2024
Amidst a whirlwind of market activity, Bitcoin encountered heightened volatility at the Wall Street open on July 31. All eyes were on the United States macro events and the impending monthly price close, stirring uncertainty among traders and investors.
Federal Reserve’s Influence on Bitcoin Price
Data from Cointelegraph Markets Pro and TradingView revealed daily highs of $66,814 on Bitstamp just ahead of the Federal Reserve’s interest rate decision. While the Federal Open Market Committee (FOMC) is not expected to adjust rates until September, the market eagerly awaits Fed Chair Jerome Powell’s post-decision remarks as they could potentially impact Bitcoin’s trajectory.
The Significance of Macroeconomic Data
In sync with the macro events, eurozone inflation surged beyond expectations to 2.6%, with core inflation peaking at 2.9% in Europe. Contrary to the positive inflation figures, major tech stocks remained under pressure, failing to lift market sentiment amid ongoing earnings reports.
Expert Insights and Price Predictions
Keith Alan from trading resource Material Indicators adopted a cautious “wait and see” approach in anticipation of the FOMC outcome and the forthcoming monthly candle close. Pointing to the critical 21-week simple moving average (SMA) support level at $65,700, Alan highlighted the potential for downside volatility with a warning of potential CME Gaps.
Market Sentiment and Trader Expectations
As Bitcoin’s price hovered around $65,500, reflecting an increase in buy liquidity according to CoinGlass data, traders like Mark Cullen expressed optimism for a liquidity sweep through the key $63K support range. With expectations of a sweep in the near future, market participants closely monitored trading patterns and potential price movements.
Conclusion
As Bitcoin traders brace for a crucial period marked by the FOMC meeting and monthly price close, market dynamics remain unpredictable. With volatility on the horizon, traders should exercise caution, conduct thorough research, and make informed decisions to navigate the evolving crypto landscape effectively.
