From increasing the interest rate again to intensifying the deposit of bitcoins to exchanges; Important events that we will witness this week
Bitcoin lost nearly 6% of its value over the past day. The announcement of the final decision of the Central Bank of America to increase the bank interest rate again and the publication of the statistics related to the growth of the GDP in this country are among the influential events that we will witness in the next two days.
To Report CoinDesk, the price of Bitcoin dropped 5.7% to below $22,000 yesterday. This drop is a correction of the 14% gain that Bitcoin experienced during the previous week. Currently, Bitcoin has lost 54% of its value since the beginning of 2022.
5 candlesticks out of the previous 6 Bitcoin candlesticks in the 1-day view of the market have closed in a loss situation (red) and at the same time, the trading volume index and the 20-day exponential moving average (EMA 20) have taken a downward slope. On Sunday, the price of Bitcoin grew by 0.6% while the trading volume was lower than average. This mild jump was followed by the profit saving of some traders at the level of $23,000 and as a result the price went down again in the following days.
Traditional financial markets had different conditions yesterday. The “S&P500” index grew by 0.34% during this period, while the Nasdaq stock index fell by 0.26%. The price of West Texas Intermediate (West Texas Intermediate) oil also increased by 1.8% and gold decreased by 0.6%.
Ethereum also experienced a 10% drop yesterday, while the trading volume of this digital currency was at an average level. It should be mentioned that Olunch and Ripple also experienced a drop of 8.4 and 5.8% respectively the previous day.
Deposits of Bitcoin to cryptocurrency exchanges have increased over the past 24 hours, as the latest statistics of on-chain activity show. indexNet Bitcoin Exchange ExchangesThe image of which is shown below, calculates the difference between the amount of bitcoins deposited in digital currency exchanges and the units withdrawn from them.
A growth or a positive change in the net capital transfer index of exchanges is usually considered a sign of an increase in the volume of Bitcoin deposits to these trading platforms and the possible sale of these units. As it turns out, following last week’s 14% price increase, traders are starting to save profits and are busy depositing their bitcoins into exchanges to eventually sell them.
From the point of view of technical analysis, the price of bitcoin is caught somewhere between the 10-day and 20-day moving average, and since the 10-day moving average broke the 20-day moving average on July 14 (July 23), it is possible Some traders have used this as an opportunity to buy.
It is interesting to know that in the last 25 days from July, the volume of Bitcoin transactions was higher than its average volume of 20 days in only 9 days. Therefore, it can be said that there is no firm determination among long-term and short-term investors to increase the price. As a result, limited price volatility is expected to continue in the short term and Bitcoin will rise and fall between the $20,500 support and $23,000 resistance in the coming days.
The $20,500 support we talked about is in line with the Visible Volume Profile Index’s “Control Point” or “VRVP”. This index actually shows the amount of trading activities in a certain time frame and price levels. The point of control is the level that has the highest amount of trading activities and shows which price the traders have agreed on the most.
Along with these issues, many investors are waiting for the Central Bank of America’s decision to increase the bank interest rate again at the meeting of this organization on Wednesday. Experts expect the central bank to raise the bank interest rate again by 0.75 percentage points at this stage. In addition, the tone of Jerome Powell, the head of the US central bank, can be important when announcing the decision and the next plans of this organization to curb inflation.
The statistics related to the growth of the US GDP are supposed to be published on Thursday, and experts expect this index to have grown by 0.5% in this period. Any number below 0.5% can be a bearish sign for traditional financial markets and digital currencies. In addition, the negative growth of the US GDP for the second consecutive month will mean that the country’s economy is facing an imminent recession.