Bitcoin continues to move sideways near $24,000. Daily trading volumes are holding at $30-$32 billion, indicating a lack of upside potential. The price has formed the fourth spinning top candlestick in a row, indicating that bulls and bears have equal power in the market. At the same time, it is important to note that buyers tried to reach $22,000, where an important resistance zone passes. However, they failed to touch that level. This confirms that buyers lack the volumes to push the pair up.
Bitcoin could break through $22,000 on the publication of reports on unemployment and GDP growth in the US. According to the data, the number of unemployed in the US has decreased to 243,000 from 267,000, which is a positive signal for the American economy. As for US GDP, analysts were pessimistic about the report and after a 1.6% decline in GDP, they expected another drop of 0.8%. However, the GDP dropped only by 0.6%. The drop was less than expected, which should have had a positive effect on the markets.
However, Bitcoin continues to move within the range of $19,000-$24,000, and key technical indicators do not signal a likely uptrend. The RSI rebounded from 32 and attempted to develop an uptrend, but began to decline and is gradually sliding to 30. This indicates that there is no buying potential in the market. This prevents BTC from starting an uptrend. The stochastic oscillator gives bearish signals and continues to move in an overbought zone. The MACD index has entered the red zone, which may indicate the formation of a downtrend.
Despite Bitcoin's technical metrics, the likelihood of a local bull run remains. This confidence is based on the S&P 500 daily chart. The instrument has resumed upward movement and is heading to $4,200. Key technical indicators point to the realization of bullish momentum. The RSI has rebounded from 50 and is showing an upward trend. The stochastic oscillator also made a bullish crossover and continues upward movement towards 50. Technically, the SPX is preparing for a longer rise and if the asset manages to close above $4,200, we can expect a similar move from Bitcoin.
In addition to its correlation with stock indices, Bitcoin receives positive in the long term. JPMorgan experts said that the decline in inflation in the second half of the year would continue, and therefore we should expect an easing of the Fed's monetary policy. Arthur Hayes is of the same opinion and notes that the US will start pumping liquidity into the markets ahead of the Senate elections this autumn. The euro/dollar began to decline after the continuation of the current policy of the Fed. Given these factors, there is a chance that the fall could be a turning point for the crypto market and Bitcoin, and end the stage of a massive correction.