Bitcoin’s rally faces resistance

22 Temmuz 2024

Today’s markets analysis on behalf of George Pavel General Manager at Capex.com Middle East

Bitcoin’s Rally Faces Resistance Amid Long Liquidations and Mt. Gox Repayments

Bitcoin started the week with a decline after a recent strong performance that saw its price exceed USD 68,000. This upward movement was largely driven by significant inflows into Bitcoin ETFs. On Friday alone, these ETFs experienced an inflow of over USD 380 million, marking the eleventh consecutive day of positive inflows. Institutional interest has been a major factor in this trend, with BlackRock’s IBIT fund attracting nearly $19 billion in net inflows.

Another factor contributing to the recent price surge is market optimism surrounding U.S. President Joe Biden’s decision not to seek re-election. This has raised hopes for a more crypto-friendly administration going forward.

Despite these positive developments, Bitcoin is now facing some headwinds. The bullish momentum is waning due to a higher volume of long liquidations compared to short liquidations. Over the last 24 hours, long liquidations have reached USD 111 million, compared to USD 64 million for short liquidations. Additionally, selling pressure may increase as repayments from the defunct Mt. Gox exchange, totaling USD 9 billion, continue.

 

Zaid Barem / YMM