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Bitcoin continues to face strong resistance at $24,900. Technical charts show it forming a double top which hints signs of moving downwards from here.
Over the last weekend, the world’s largest cryptocurrency Bitcoin (BTC) surged past $25,000 driven by the recent market momentum. Also, this was the first time in nine weeks that the BTC price was trading above $25,000.
However, Bitcoin has been showing weakness and isn’t able to hold above $25K for now. As of press time, the broader crypto market has come under selling pressure and so does Bitcoin. As of press time, Bitcoin is trading 3% down at a price of $24,057 with a market cap of $460 billion.
Also, on the weekly chart, the BTC price has gained less than 1% which shows a momentary pause in the Bitcoin price rally. On the macro front, the declining trend in the inflation data is a positive indicator for Bitcoin.
On the other hand, global factors have been playing a decisive role in the movement of the crypto market. With the US inflation numbers for the month of July on a decline from the previous month, the Fed is likely to continue with its interest rate hikes and quantitative tightening measures. Thus, the risk-off environment is likely to continue going further.
Bitcoin (BTC) Technical Charts
On the technical chart, Bitcoin is seemingly forming a double-top pattern and we could possibly be heading lower from here. As per popular crypto trader Il Capo of Crypto, this could be the top of the bear market rally. The analyst writes:
“$25k reached but no bearish signs yet on ltf. We could see another leg up to 25400-25500, but imo the top of this bear market rally is very close. Most altcoins are reaching major resistances.”
However, if Bitcoin were to shit the momentum to bullish, it must stay above its multi-month support of $24,500.
Retail Participation Lacking in Crypto Space
Over the last few weeks, institutional participation in the crypto space has been strong. Recently, world’s largest asset manager BlackRock announced its partnership with crypto exchange Coinbase to offer its institutional clients exposure to BTC and other assets. At the same time, hedge-fund giant Brevan Howard raised more than $1 billion for a crypto fund.
On the other hand, Bloomber report shows that the retail participation is still lacking. The report notes that retail participation is key for the market euphoria to continue.