Analysts of the Bitfinex platform have identified a zone around $ 68,000 as the next key resistance level for the first cryptocurrency. The researchers note that the average entry price of short-term holders over the past five months and the opening level of the second quarter intersect in this area. During the first test of this mark, increased volatility is possible, since some market participants may seek to fix the results at breakeven, which will create an additional corrective effect. In turn, Kyle Rodda, senior market analyst at Capital com, identified the $63,000 level as an important support zone. According to him, maintaining quotes above this limit will indicate the stabilization of the current correction, and a return to the range of $ 65,000 to $ 66,000 will strengthen the momentum for movement to recent highs.

The dynamics of digital assets are also influenced by macroeconomic factors. Kyle Rodda stressed that Federal Reserve Chairman Kevin Warsh's intention to reduce inflation may require a tighter monetary policy. Such a scenario can slow down economic growth and affect the labor market, which, in turn, will affect the value of bitcoin through an increase in real interest rates. At the same time, Vetle Lunde, head of the K33 research department, attributed the current moderate dynamics of the crypto market to seasonal factors. According to him, bitcoin has entered a quiet summer phase and is consolidating after returning above the $60,000 mark. For the first time since May, the thirty-day volatility of the asset decreased below the indicator of 1.7 percent.

At the time of writing, digital gold is trading at a price of about $65,400, showing minimal changes over the past 24 hours. Vetle Lunde called the stabilization of inflows of funds into cryptocurrency exchange-traded funds the most encouraging signal. If in May the net outflow from these products was observed in seventy percent of trading days, and in June this share reached ninety percent, then in less than July this figure decreased to thirty-three percent. Nevertheless, the expert believes that a stronger foundation, along with historically low open interest, indicates limited participation by institutional investors rather than a full restoration of confidence in the digital asset market. Recall that earlier this week, the bitcoin price has already updated its monthly maximum.

***

The material has been prepared solely for informational purposes and does not constitute financial advice or recommendation.