Bitcoin Reclaims Ground: Zerocap’s Insights in Cointelegraph

Read more in a recent article in Cointelegraph.

22 July  2024: As Bitcoin reclaims ground above the $62,000 mark, analysts suggested to Cointelegraph, in a recent article, that the worst of the recent selling may be behind us. The easing macro environment, combined with the resolution of Germany’s forced selling and the anticipated Mt. Gox repayments, is driving positive sentiment in the market.

Bitcoin’s Recent Rally

Bitcoin has experienced a notable rally, surging 5.2% in the last 24 hours and bouncing off two-month lows of $53,500 on July 4. Currently, Bitcoin is trading at approximately $62,550, according to TradingView data. This marks the first time Bitcoin has held above $62,000 since July 2.

Mark Hiriart, Head of Sales at Zerocap, highlights the end of Germany’s forced selling and the pricing of Mt. Gox repayments as significant factors contributing to this rally. “Despite Bitcoin breaking $62,000, it would need to flip the $60,000 resistance into support,” he says, suggesting the price would need to hold steady above the $60,000 mark for some time [Cointelegraph].

The Role of Macroeconomic Factors

The broader macroeconomic landscape also plays a crucial role in Bitcoin’s recent performance. The Federal Reserve’s signals regarding potential rate cuts and lower-than-expected inflation figures in the U.S. have provided a positive backdrop for crypto markets.

Mark Hiriart explains, “Inflation came out lower than expected and expectations that the Fed will start cutting rates got a boost. The market is now expecting first-rate cuts as soon as September” [Cointelegraph].

Market Sentiment and Technical Analysis

Despite the positive developments, Hiriart cautions that Bitcoin still faces several technical hurdles before it can embark on a sustained uptrend. “Bitcoin must regain its 50-day and 100-day simple moving averages before BTC could progress higher to $65,000 and beyond,” he notes [Cointelegraph].

Potential Headwinds: Mt. Gox Repayments

While the market has largely priced in the impact of Mt. Gox repayments, Hiriart warns of potential short-term pressures. “With Mt. Gox’s creditors sitting on a ten-year profit, it would be naive to think there won’t be any profit taking,” he says. “I would suspect short-term pressure on the market to continue over the summer months” [Cointelegraph].

A Cautiously Optimistic Outlook

Hiriart maintains a cautiously optimistic outlook for Bitcoin’s price movement in the coming months. “I also don’t think there’s going to be a lot of push for the price to go much higher in the short run. I think we will see BTC move around $55K–$65K at least until the Fed actually cuts rates” [Cointelegraph].

Looking Ahead

Several key catalysts could drive Bitcoin’s price higher in the coming months. Hiriart points to potential changes in U.S. monetary policy, the performance of traditional financial markets, and increased institutional interest in Bitcoin as significant factors to watch.

“We have seen significant weakness in recent months, but the worst may be behind us. The combination of easing macroeconomic pressures, reduced forced selling, and positive market sentiment bodes well for Bitcoin’s future,” Hiriart concludes [Cointelegraph].

Final Thoughts

In summary, while the road to higher Bitcoin prices may be marked with short-term volatility, the broader outlook remains positive. Mark Hiriart, Head of Sales at Zerocap is optimistic about Bitcoin’s potential to reclaim higher levels, driven by favorable macroeconomic conditions and reduced market overhangs.

Disclaimer: This article includes a summary of content originally published in Cointelegraph. The information is intended for informational purposes only. Zerocap does not endorse or approve any specific content or viewpoints contained in the original articles.

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