{"id":19520,"date":"2023-06-26T08:42:19","date_gmt":"2023-06-26T08:42:19","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/btc-price-up-fundamentals-down-5-things-to-know-in-bitcoin-this-week\/"},"modified":"2023-06-26T08:42:21","modified_gmt":"2023-06-26T08:42:21","slug":"btc-price-up-fundamentals-down-5-things-to-know-in-bitcoin-this-week","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/btc-price-up-fundamentals-down-5-things-to-know-in-bitcoin-this-week\/","title":{"rendered":"BTC price up, fundamentals down? 5 things to know in Bitcoin this week"},"content":{"rendered":"
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Bitcoin (BTC) starts a new week in a solid position above $30,000 after its latest rapid gains.<\/p>\n

BTC price action continues to deliver on bulls\u2019 expectations after weeks of sideways trading offered little relief. Can it continue?<\/p>\n

That is the question on every trader\u2019s mind this week \u2014 $30,000 held into the weekly close and beyond, but in a volatile crypto market, anything can and does happen.<\/p>\n

The macroeconomic climate is somewhat \u201cstandard\u201d for the final week of June, offering some potential risk asset price catalysts but avoiding several major data releases at once.<\/p>\n

The weekend\u2019s news out of Russia appears to have had little impact on market performance elsewhere, having mostly concluded before the start of the week\u2019s trading.<\/p>\n

Turning to Bitcoin itself, a phase of taking stock appears to be here, with fundamentals conversely primed to shift down from all-time highs.<\/p>\n

Sentiment is volatile too with $30,000, in particular, a pivotal level.<\/p>\n

Cointelegraph takes a look at these factors and more in the weekly rundown of what is moving BTC price action in the short term.<\/p>\n

Bitcoin bulls protect $30,000 at weekly close<\/h2>\n

Bitcoin drifted lower through the final part of the weekend after briefly touching $31,000. <\/p>\n

Despite a lack of momentum, bulls managed to defend the $30,000 mark overnight, and at the time of writing on June 26, $30,500 was back as a focus, per data from Cointelegraph Markets Pro and TradingView.<\/p>\n

BTC\/USD 1-hour chart. Source: TradingView<\/em><\/figcaption><\/figure>\n

In total, BTC\/USD gained 15.6% last week, making it its third best weekly performance of 2023, according to data from monitoring resource CoinGlass.<\/p>\n

BTC\/USD return comparison (screenshot). Source: CoinGlass<\/em><\/figcaption><\/figure>\n

\u201cThis week is all about flipping that resistance zone \/ supply zone at $31,000 into support,\u201d popular trader Crypto Tony told<\/a> Twitter followers. <\/p>\n

\u201cThat is all i care about, but i do remain long while we consolidate below this level. Any harsh drops and i will be closing in profit and looking for a re entry.\u201d<\/p><\/blockquote>\n

He added<\/a> that both Bitcoin and Ether (ETH), the largest altcoin by market cap, were at resistance, the latter facing a battle for $2,000.<\/p>\n

\u201cCertainly going to be an important week for us all,\u201d he commented.<\/p>\n

Fellow trader Jelle agreed, predicting fresh gains on the horizon once $30,000 was dealt with for good.<\/p>\n

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The #Bitcoin<\/a> weekly closed right at resistance.<\/p>\n

Clear $30k in the coming weeks, and we’ll see much higher prices.<\/p>\n

Until then, I continue buying dips. pic.twitter.com\/r4jlRlm4xo<\/a><\/p>\n

\u2014 Jelle (@CryptoJelleNL) June 26, 2023<\/a><\/p><\/blockquote>\n

Trader and analyst Rekt Capital described the wider Bitcoin price correction as \u201cover,\u201d while noting renewed flows into altcoins.<\/p>\n

\u201cAlready we are seeing some Money Flow into Altcoins as BTC stays stable,\u201d part of the weekend\u2019s analysis stated<\/a>, adding that the total crypto market cap had performed an impressive support retest.<\/p>\n

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Total #Crypto<\/a> Market Cap performs a fantastic retest attempt<\/p>\n

Once an area of resistance (red), this area has been successfully retested as new support<\/p>\n

This retest has sent the entire market into an uptrend<\/p>\n

If you like my content – you might enjoy my newsletter<\/p>\n

This is where I\u2026 pic.twitter.com\/hPZV1nUXf1<\/a><\/p>\n

\u2014 Rekt Capital (@rektcapital) June 25, 2023<\/a><\/p><\/blockquote>\n

The total crypto market was also on the radar for Micha\u00ebl van de Poppe, founder and CEO of trading firm Eight, who eyed its potential reclaim of the 200-week moving average.<\/p>\n

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The total market capitalization for #Crypto<\/a> is looking at a reclaim of the 200-Week MA and continuation towards $1.6T. pic.twitter.com\/GlmjBjuifU<\/a><\/p>\n

\u2014 Micha\u00ebl van de Poppe (@CryptoMichNL) June 25, 2023<\/a><\/p><\/blockquote>\n

Fed’s Powell, PCE data headline “huge” macro week<\/h2>\n

The week is set to be dominated by two key events from the wider economy, notably United States data prints, which will follow commentary by Jerome Powell, Chair of the Federal Reserve.<\/p>\n

Powell will hold \u201cdiscussions\u201d on the economy over two days on June 28-29, while June 30 will see the release of the latest U.S. Personal Consumption Expenditures (PCE) Index figures.<\/p>\n

These, Powell has previously said, are the Fed\u2019s preferred yardstick for measuring inflation trends, with a better-than-expected number thus potentially impacting its next decision on interest rate adjustments.<\/p>\n

\u201cHuge week with a \u2018Fed pivot\u2019 in question,\u201d financial commentary resource The Kobeissi Letter summarized<\/a> in part of Twitter coverage.<\/p>\n

Kobeissi referred to the possibility of the Fed abandoning its rate hike cycle for good, while Powell previously hinted that hikes may continue after being left unchanged in June.<\/p>\n

The latest data from CME Group\u2019s FedWatch Tool meanwhile put the odds of a July hike at over 70% as of June 26.<\/p>\n

Fed target rate probabilities chart. Source: CME Group<\/em><\/figcaption><\/figure>\n

Mining difficulty due to drop despite BTC price gains<\/h2>\n

In an interesting, if likely temporary, counterpoint to BTC price strength, Bitcoin network fundamentals are cooling their own gains.<\/p>\n

According to the latest estimates from BTC.com, Bitcoin network difficulty is due to decrease at its upcoming readjustment on June 29.<\/p>\n

This will mark the first downward readjustment since early May, but is currently forecast to be the second-largest of 2023 at around -2.5%.<\/p>\n

Bitcoin network fundamentals overview (screenshot). Source: BTC.com<\/em><\/figcaption><\/figure>\n

Overall, however, the change is modest within historical context, and reacting, mining firm Simple Mining described<\/a> the combination of accelerating spot price and declining difficulty as \u201cminers\u2019 two favorite things.\u201d<\/p>\n

Meanwhile, James McAvity, CEO of Texas-based Bitcoin energy firm Cormint, suggested that local events were responsible for the difficulty blip.<\/p>\n

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Bitcoin mining difficulty is adjusting down in response to the Texas heat wave prompting increased curtailment and underclocking from miners. As late stage proof of work rolls in, we will continue to see difficulty move inversely to seasonal grid demand. pic.twitter.com\/EOUmkF0gcZ<\/a><\/p>\n

\u2014 James McAvity (@jamesmcavity) June 23, 2023<\/a><\/p><\/blockquote>\n

Hash rate \u2014 an estimated measure of the computing power dedicated to mining \u2014 displayed similar behavior on the day, having declined from all-time highs through the week prior, as per data from data resource Blockchain.com.<\/p>\n

Bitcoin RHODL Ratio points to “new breakout”<\/h2>\n

Bitcoin is at the dawn of a \u201cnew speculation cycle,\u201d popular analyst Philip Swift believes.<\/p>\n

In his latest research<\/a> into Bitcoin\u2019s RHODL Ratio metric, the LookIntoBitcoin founder argued that the BTC supply is beginning its move from hodler-based to speculative instrument.<\/p>\n

Swift\u2019s RHODL looks at the realized value of coins in specific age bands \u2014 their value at the time that they last moved. The RHODL Ratio looks at the 1-week band versus the 1-2 years band.<\/p>\n

\u201cIt also calibrates for increased hodl\u2019ing over time and for lost coins by multiplying the ratio by the age of the market in number of days. When the 1-week value is significantly higher than the 1-2yr it is a signal that the market is becoming overheated,\u201d Swift explains in his introduction on LookIntoBitcoin.<\/p>\n

While complex on paper, RHODL Ratio acts as a useful tool for Bitcoin price cycles, and is currently repeating classic behavior common at the start of bull markets.<\/p>\n

While the property of long-term hodlers at the end of 2022, opportunistic traders are now stepping in again, the metric suggests, indicative of a transition to broader mainstream trading interest.<\/p>\n

\u201cAs new players begin to enter the market and younger coins hold greater value, the RHODL Ratio is looking primed for a new breakout,\u201d Swift commented.<\/p>\n

Bitcoin RHODL Ratio annotated chart. Source: Philip Swift\/Twitter<\/em><\/figcaption><\/figure>\n

Sentiment could “swing the other way”<\/h2>\n

Crypto market sentiment appears to care significantly about the fate of $30,000 for BTC price.<\/p>\n

Related:\u00a0Bitcoin \u2018parabolic advance\u2019 means BTC price all-time high in 2023 \u2014 Trader<\/em><\/strong><\/p>\n

The Crypto Fear & Greed Index, which measures market mood composition, has fluctuated considerably in recent days as BTC\/USD attempts to create new support.<\/p>\n

After highs of 65\/100 on June 22, the Index has shed 10 points, trending toward \u201cneutral\u201d territory as spot price momentum itself cools.<\/p>\n

Fear & Greed is a lagging indicator, yet shows how sensitive the market is to current price action \u2014 and not just BTC, with ETH attempting to flip $2,000 to support.<\/p>\n

Based on sentiment data, meanwhile, popular trader warned<\/a> against longing until clearer signals were given.<\/p>\n

\u201cSentiment could be about to swing the other way,\u201d he said.<\/p>\n

Crypto Fear & Greed Index (screenshot). Source: Alternative.me<\/em><\/figcaption><\/figure>\n

Magazine: Gary Gensler\u2019s job at risk, BlackRock\u2019s first spot Bitcoin ETF and other news: Hodler\u2019s Digest, June 11\u201317<\/em><\/strong><\/p>\n

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<\/div>\n