Key Takeaways:
- Bitcoin opens the week in negative territory.
- Fed blackout period leading up to its rate decision may keep the BTC price flat.
- Levels to watch out for.
YEREVAN (CoinChapter.com) — Bitcoin (BTC) declined modestly on the first day of its new weekly session beginning on July 17. Nonetheless, a mix of fundamental and technical indicators raises the coin’s upside prospects in the coming days.
Fading XRP FOMO Limits Bitcoin Gains
Last week, Bitcoin wobbled between extreme gains and losses as traders assessed a weaker U.S. inflation print against Ripple’s partial win against the U.S. Securities and Exchange Commission (SEC).
On July 13, the BTC price broke toward $32,000 after a federal judge ruled that the XRP sales on public crypto exchanges did not break securities laws. Nonetheless, altcoins under the SEC’s regulatory radar posted better profits than Bitcoin, including Cardano (ADA), Solana (SOL), and XRP itself.
But, the next day, most altcoins corrected sharply in what appeared to be a profit-taking scenario. Bitcoin plunged similarly, giving up all its recent gains and closing the week at a nominal 0.5% profit.
This Bitcoin Week in Review
Bitcoin’s gains last week came against the backdrop of a weaker U.S. dollar index (DXY).
The greenback weakened as a softer U.S. consumer price index (CPI) report prompted market participants to believe that the Federal Reserve would reach its peak interest rate in the July 25-26 meeting.
The dollar may consolidate sideways amid the Fed blackout period — between now and the next central bank meeting. As a result, Bitcoin’s likelihood of bouncing inside its prevailing trading range — roughly the $29,850-$31,500 area — for the remainder of this week is high.
So, a bounce from $29,850 could have traders eye a run-up toward $31,500 — and vice versa. Nonetheless, in a breakout scenario, a decisive close below $29,850 may trigger an extended decline toward $28,250, down 3% from current price levels.
Conversely, a close above $31,500 could push the price toward $32,350, a May 2022 high.
