{"id":5908,"date":"2022-07-25T10:03:51","date_gmt":"2022-07-25T10:03:51","guid":{"rendered":"https:\/\/fatburningcoffeetrick.com\/?p=5908"},"modified":"2022-07-25T10:03:51","modified_gmt":"2022-07-25T10:03:51","slug":"will-the-fed-prevent-btc-price-from-reaching-28k-5-things-to-know-in-bitcoin-this-week","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=5908","title":{"rendered":"Will the Fed prevent BTC price from reaching $28K? \u2014 5 things to know in Bitcoin this week"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>Bitcoin (BTC) enters a new week with a question mark over the fate of the market ahead of another key United States monetary policy decision.<\/p>\n<p>After sealing a successful weekly close \u2014 its highest since mid-June \u2014 BTC\/USD is much more cautious as the Federal Reserve prepares to hike benchmark interest rates to fight inflation.<\/p>\n<p>While many hoped that the pair could exit its recent trading range and continue higher, the weight of the Fed is clearly visible as the week gets underway, adding pressure to an already fragile risk asset scene.<\/p>\n<p>That fragility is also showing in Bitcoin\u2019s network fundamentals as miner strain becomes real and the true cost of mining through the bear market shows.<\/p>\n<p>At the same time, there are encouraging signs from some on-chain metrics, with long-term investors still refusing to give in.<\/p>\n<p>Cointelegraph takes a look at the week\u2019s possible market movers in a tense week for crypto, equities and more.<\/p>\n<h2>Fed to decide on next rate hike in \u201canother fun\u201d week<\/h2>\n<p>The story of the week, all things being equal, is no doubt the Federal Reserve rate hike. <\/p>\n<p>A familiar tale, the Federal Open Markets Committee (FOMC) on July 26-27 will see policymakers decide on the extent of the next interest rate move. This is tipped to be either 75 or 100 basis points.<\/p>\n<p>U.S. inflation, as in many jurisdictions, is at forty-year highs, and its advance appears to have caught the establishment by surprise as calls for a peak are met with even larger gains.<\/p>\n<p>\u201cShould be another fun one,\u201d Blockware lead insights analyst William Clemente summarized on July 25.<\/p>\n<p>The interest rate decision is due July 27 at 2:00 pm EST, a diary date that could well be accompanied by increased volatility across risk assets. <\/p>\n<p>This has the potential to be exacerbated, one analyst warned, thanks to low summer liquidity and a lack of conviction among buyers.<\/p>\n<p>\u201cEntering ECB\/FOMC\/Tech Earnings amid the lowest liquidity of the year. Market is back to overbought. Bulls, let it ride,\u201d Twitter account Mac10 wrote.<\/p>\n<p>A previous post also flagged Q2 earnings reports as potentially contributing to a downwards move in line with previous behavior.<\/p>\n<p lang=\"en\" dir=\"ltr\">Tech Earnings and FOMC have been catalyst for two major crashes in 2022. <\/p>\n<p>&#8220;This time will be different&#8221; pic.twitter.com\/XgS1dDOLce<\/p>\n<p>\u2014 Mac10 (@SuburbanDrone) July 22, 2022<\/p>\n<p>\u201cBTC and risk assets have pumped higher on FOMC events this year, only to sell off after, is this time different?\u201d fellow analysis account Tedtalksmacro continued:<\/p>\n<p>\u201cJune\u2019s FOMC meeting saw the US federal reserve deliver a 75bps hike &#8211; the single largest since 1994. More hefty hikes are expected before inflation is \u2018normalised.\u2019\u201d<\/p>\n<p>The week is already feeling different to last, even before events begin unfolding \u2014 Asian markets are flat in comparison to last week\u2019s bullish tone, one which accompanied a resurgence across Bitcoin and altcoins.<\/p>\n<p>While one argument says that the Fed cannot raise rates much more without tanking the economy, meanwhile, Tedtalksmacro pointed to the employment market as a target for keeping hikes coming.<\/p>\n<p>\u201cBitcoin will struggle to move past 28k until data deteriorates,\u201d he added.<\/p>\n<h2>Spot price fails to nail key moving average<\/h2>\n<p>Bitcoin\u2019s latest weekly close was something of a halfway house for bulls, data from\u00a0Cointelegraph Markets Pro and TradingView\u00a0shows. <\/p>\n<p>While managing its best performance in over a month, BTC\/USD missed out on reclaiming the essential 200-week moving average (MA) at $22,800.<\/p>\n<p><em>BTC\/USD 1-hour candle chart (Bitstamp). Source: TradingView<\/em><\/p>\n<p>After the close, which came in at around $22,500, Bitcoin began falling to the bottom of its latest trading range, still lingering below $22,000 at the time of writing. <\/p>\n<p lang=\"en\" dir=\"ltr\">Good morning legends <\/p>\n<p>Range high dump during the overnight session on $ETH and $BTC .. <\/p>\n<p>Looking for some relief if we can hold $1460 on $ETH and $21,700 on $BTC <\/p>\n<p>Chart updates to come <\/p>\n<p>\u2014 Crypto Tony (@CryptoTony__) July 25, 2022<\/p>\n<p>\u201cObserving IF we find support at $21,666 horizontal. Patience,\u201d popular trader Anbessa told Twitter followers in his latest update.<\/p>\n<p>Fellow account Crypto Chase, meanwhile, suggested that a return to the 200-week MA would result in the further modest upside.<\/p>\n<p>\u201cChopping around the Daily S\/R (red box) with an inability to flip 22.8K (Daily resistance) to support. Multiple attempts to do so, but failing so far,\u201d he wrote alongside explanatory charts:<\/p>\n<p>\u201cIf price pushes above again and finds acceptance, I\u2019ll watch 22.8K to become support for potential long entry to 23.2K.\u201d<\/p>\n<p>A later update eyed $21,200 as a potential bearish target, this also forming a support\/resistance level on the daily chart.<\/p>\n<p>At $21,900, however, Bitcoin still remains around $1,200 higher versus the same point a week ago. <\/p>\n<p><em>BTC\/USD 1-week candle chart (Bitstamp) with 200-week MA. Source: TradingView<\/em><\/p>\n<p>Elsewhere, the latest price action was not enough to change long-term views. For Venturefounder, a contributor at on-chain analytics firm CryptoQuant, a\u00a0macro bottom\u00a0had yet to appear, this potentially coming in as low as $14,000.<\/p>\n<p>\u201cInline with the past halving cycles, this is still my most viable forecast for Bitcoin before next halving: BTC will capitulate in the next 6 months &amp; hit cycle bottom (anywhere between $14-21k), then chop around in $28-40k in most of 2023 and be at ~$40k again by next halving,\u201d a retweeted forecast originally from June reiterated.<\/p>\n<h2>Difficulty returns to March levels<\/h2>\n<p>In a sign that miners\u2019 troubles due to price weakness may only just be beginning, upheaval is now visible across the Bitcoin network.<\/p>\n<p>Difficulty, the measure of competition among miners which adjusts itself relative to participation, has been declining since late June and is now back at levels not seen since March.<\/p>\n<p>The most recent adjustment was particularly noticeable, knocking 5% off the difficulty total and heralding change in miner activity. That was the largest single drop since May 2021, and the next, due in ten days\u2019 time, is currently estimated to take difficulty down another 2%.<\/p>\n<p>As arguably the most important aspect of the Bitcoin network itself, difficulty adjustments also set the scene for recovery by leveling the playing field for miners. The lower the difficulty, the \u201ceasier\u201d \u2014 or less energy-intensive \u2014 it is to mine BTC due to there being less competition overall.<\/p>\n<p>In the meantime, however, the need to stay afloat remains a preoccupation, data shows. According to CryptoQuant, miners sent 909 BTC to exchanges on July 24 alone, the most in a day since June 22 and a 5% difficulty decrease.<\/p>\n<p>A turnaround for miners thus remains out of sight this week.<\/p>\n<p><em>Bitcoin network fundamentals overview (screenshot). Source: BTC.com<\/em><\/p>\n<p>As Cointelegraph additionally reported, it is not just the BTC price that is giving miners a hard time under current conditions.<\/p>\n<h2>Congratulations to the MVRV-Z score<\/h2>\n<p>One of the hottest on-chain metrics in Bitcoin has just crossed what is arguably its most important level \u2014 zero.<\/p>\n<p>On July 25, Bitcoin\u2019s MVRV-Z Score returned to negative territory after a brief week above, in so doing falling into the zone typically reserved for macro price bottoms. <\/p>\n<p lang=\"en\" dir=\"ltr\"> #Bitcoin $BTC MVRV Z-Score just crossed 0.<\/p>\n<p>Before: 0.010 -&gt; Now: -0.000<\/p>\n<p>View metric:https:\/\/t.co\/IBVIM3J84o pic.twitter.com\/DRGqIxKW7w<\/p>\n<p>\u2014 glassnode alerts (@glassnodealerts) July 25, 2022<\/p>\n<p>MVRV-Z shows how overbought or oversold BTC is relative to \u201cfair value\u201d and is popular thanks to its uncanny ability to define price floors.<\/p>\n<p>Its return could signal a fresh period of price pressure, as accuracy in catching bottoms has a two-week margin of error.<\/p>\n<p>At the beginning of July, Cointelegraph reported on MVRV-Z,\u00a0giving a worst-case scenario of $15,600 for BTC\/USD this time around.<\/p>\n<h2>Sentiment cools from four-month highs<\/h2>\n<p>For the crypto market, the past week may well have been a brief period of irrational exuberance if sentiment data is to be believed.<\/p>\n<p><strong><em>Related:\u00a0Top 5 cryptocurrencies to watch this week: BTC, ETH, BCH, AXS, EOS<\/em><\/strong><\/p>\n<p>The latest numbers from the Crypto Fear &amp; Greed Index show a steady decline from what has been the most positive market sentiment since April.<\/p>\n<p>As of July 25, the Index stands at 30\/100 \u2014 still described as \u201cfear\u201d driving the mood overall but still five points above the \u201cextreme fear\u201d bracket in which the market previously spent a record 73 days. <\/p>\n<p>Sentiment has nonetheless made quite the comeback since mid-June when Fear &amp; Greed hit some of its lowest levels on record at just 6\/100.<\/p>\n<p><em>Crypto Fear &amp; Greed Index (screenshot). Source: Alternative.me<\/em><\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/will-the-fed-prevent-btc-price-from-reaching-28k-5-things-to-know-in-bitcoin-this-week\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin (BTC) enters a new week with a question mark over the fate of the market ahead of another key United States monetary policy decision. After sealing a successful weekly close \u2014 its highest since mid-June \u2014 BTC\/USD is much more cautious as the Federal Reserve prepares to hike benchmark interest rates to fight inflation. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5909,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-5908","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/5908","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5908"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/5908\/revisions"}],"predecessor-version":[{"id":5910,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/5908\/revisions\/5910"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/5909"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5908"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5908"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5908"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}