Bitcoin (BTC) price trades above $61,000 on Wednesday after rebounding 2.6% on Tuesday as the broad crypto market recovers slightly. Bitcoin spot ETFs registered inflows of $31 million on Tuesday, snapping a streak of seven consecutive days of outflows. In the US, Congressman Matt Gaetz proposed legislation enabling federal income tax payments with Bitcoin, while in Europe the German Government’s transfer of 400 BTC, valued at $24.34 million, added to the recent selling pressure.
Bitcoin Spot ETF Net Inflow (USD) chart
UPDATE: German Government selling additional $24M BTC
In the past 2 hours the German Government has moved 400 BTC to exchange deposits at Kraken and Coinbase.
They have also moved 500 BTC to address 139Po. We have yet to see where these funds are moved. pic.twitter.com/D6QCUv9Jgx
— Arkham (@ArkhamIntel) June 25, 2024
BREAKING: Today, I introduced groundbreaking legislation to modernize our tax system by requiring @USTreasury to implement a program to allow federal income tax to be paid with Bitcoin.
By enabling taxpayers to use #Bitcoin for federal tax payments, we can promote innovation,Â… pic.twitter.com/TO2iPuvrQs
— Rep. Matt Gaetz (@RepMattGaetz) June 25, 2024
Santiment Defi Liquiation chart
Bitcoin’s price broke below the descending wedge on Monday, declining approximately 7.5% from its daily high of $63,369 to a low of $58,402. After retesting its crucial weekly support near $58,375, BTC rebounded by 5.8%, closing at $61,806 on Tuesday. BTC trades at around $61,654 at the time of writing, edging down approximately 0.2% on Wednesday.
If the weekly support at $58,375 holds, Bitcoin could encounter resistance at several key levels.
A breakthrough above these resistance barriers could propel BTC’s price towards retesting the next weekly resistance at $71,280.
The Relative Strength Index (RSI) is currently well below 50 on the daily chart, close to oversold levels, while the Awesome Oscillator (AO) is below its zero level. For bulls to stage a convincing comeback, both momentum indicators would need to sustain positions above their respective thresholds of 50 for RSI and zero for AO.
BTC/USDT daily chart
However, if BTC closes below the $58,375 level and forms a lower low on the daily time frame, it could indicate that bearish sentiment persists. Such a development may trigger a 3% decline in BitcoinÂ’s price, revisiting its previous low of $56,552 from May 1.
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of BitcoinÂ’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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