Bitcoin, the world’s largest cryptocurrency, could not sustain its upward momentum. It faced a decline on Monday as traders exercised caution ahead of significant economic data releases and potential interest rate adjustments by central banks.

Although Bitcoin experienced a weakening in price on Monday, it managed to maintain its position near the $30,000 level.

Moreover, the bullish US dollar, backed by robust US data and a higher probability of interest rate hikes, was another key factor that caps further gains in the BTC.

Crypto Markets Brace for Lower Close Amid Dollar Recovery and Chinese Economic Concerns

As mentioned earlier, the crypto markets were expected to close lower on Monday, mainly due to the US dollar bouncing back from its initial reaction to weak job growth data.

Additionally, concerns arose due to disappointing inflation figures in China, signaling potential economic challenges for the country. In June, consumer prices in China saw a decline of 0.2%, resulting in an overall stagnant annual figure, the slowest since 2021.

Furthermore, there has been a 5.4% decline in producer prices compared to the previous year, marking the most significant decrease in seven-and-a-half years. These figures suggest that Chinese authorities might have to consider implementing additional monetary and fiscal policy measures to safeguard against deflation.

Hence, the concerns about the health of the Chinese economy and potential deflationary pressures could contribute to a cautious sentiment among investors, which may impact the overall demand for cryptocurrencies like Bitcoin.

Regarding upcoming releases, June inflation data for Europe and the United States will be closely watched. The focus will primarily be on the US, with expectations that the June consumer price index (CPI) will show a 3.1% annual increase, the slowest since March 2021.

This data follows the June jobs report, indicating that the Federal Reserve will resume raising interest rates later this month. These factors have led to cautiousness in the crypto markets, resulting in expectations of a lower close on Monday.

JPMorgan’s Managing Director Downplays Potential Impact of Spot Bitcoin ETF on Crypto Markets

JPMorgan’s managing director, Nikolaos Panigirtzoglou, does not think a spot Bitcoin exchange-traded fund (ETF) will make a big difference in the cryptocurrency market. He points out that there hasn’t been much interest in spot Bitcoin ETFs in Canada and Europe, suggesting its impact in the United States could also be limited. Thus, this report was a slight downside for the crypto markets.

The impact of this news on the price of Bitcoin is likely to be minimal as the report suggests that a spot Bitcoin ETF may not have a significant effect on the cryptocurrency market. Instead, it may lead to decreased expectations and potentially dampen investor enthusiasm, which could put slight downward pressure on BTC prices in the short term.

Bitcoin Price

The price range indicates active involvement from bullish and bearish investors as BTC holds around the $30,000 mark. In the meantime, the global cryptocurrency market cap decreased to around $1.17 trillion, with a drop of almost 1% in the last 24 hours. The current Bitcoin price is $30,140, and the 24-hour trading volume is $8,855,066,632. Bitcoin has fallen by 0.47% in the previous 24 hours.

Bitcoin
Bitcoin Price Chart – Source: Tradingview

Bitcoin, the dominant cryptocurrency, exhibited a sideways trajectory on Monday, maintaining a price range confined between the upper barrier of $30,500 and the lower limit of $30,000. Detailed scrutiny of the 4-hour timeframe revealed a notable hindrance encountered by Bitcoin near the $30,500 threshold. This hindrance is substantiated by the presence of a double top pattern and the 50-day exponential moving average.

Conversely, the $30,000 level emerged as a robust support level, impeding further downward momentum in Bitcoin’s price. Nonetheless, breaching this support level could potentially trigger a descent towards the $29,700 mark. In the event of sustained bearish activity, the price may find additional support at the subsequent level of $29,250, and possibly even descend further towards $29,000.

Conversely, if Bitcoin successfully surges beyond the resistance at $30,500, it holds the capacity to drive the price towards the thresholds of $31,000 or even $31,350.

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