The next major resistance level for Bitcoin is around $68,000, according to analysts at Bitfinex, as reported by The Block.
Researchers estimate that this level coincides with the average entry price of short-term holders over the past five months and the opening level of the second quarter.
However, the initial test of this mark could provoke a sharp reaction, as some holders may attempt to exit at breakeven, increasing selling pressure.
Kyle Rodda, a senior market analyst at Capital.com, identified $63,000 as a crucial support level. Holding above this mark would indicate a stabilization of the correction, while a return to the $65,000-$66,000 range would strengthen momentum and the scenario for a move towards recent highs.
"If [Federal Reserve Chair] Kevin Warsh is determined to reduce inflation—which will require tighter policy that may, in turn, weaken economic growth and the labor market—this could certainly have a significant impact on Bitcoin, including through rising real interest rates," Rodda added.
At the same time, Vetle Lunde, head of research at K33, linked the sluggish dynamics of the crypto market to seasonality. He noted that Bitcoin has entered a calm summer phase and is consolidating after rising above $60,000, with the 30-day volatility of the asset falling below 1.7% for the first time since May.
At the time of writing, Bitcoin is trading at $65,700, showing little change over the past day.
15-minute chart of BTC/USDT on Binance. Source: TradingView.The most encouraging signal, according to Lunde, is the stabilization of inflows into crypto ETFs. In May, there was a net outflow from products on 70% of trading days, which increased to 90% in June. In early July, this figure dropped to 33%.
Source: SoSoValue.Lunde believes that a more solid foundation, along with historically low open interest, indicates weak participation from institutional investors rather than a full return of confidence to the crypto market.
Recall that on July 21, Bitcoin's price reached a monthly high of $66,400.