Key Points
- Bitcoin’s dominance is rising, aiming for $70,000, fueled by the Bitcoin 2024 conference hype and potential Federal Reserve decisions.
- Japanese firm Metaplanet’s substantial Bitcoin purchases underscore market confidence, despite potential for a short-term pullback.
The Bitcoin 2024 conference has helped to push the price of Bitcoin (BTC) near the $70K mark once again.
Whale activity appears to have paused as market participants eagerly anticipate Bitcoin’s next moves.
Bitcoin’s dominance in the market has been on a steady climb as the cryptocurrency started the week with a strong bullish performance, targeting the $70,000 mark.
This surge has been bolstered by the buzz surrounding the Bitcoin 2024 conference and the politically charged enthusiasm that was prevalent over the weekend.
Impact of the Bitcoin 2024 Conference
The conference had a significant effect on demand and, more notably, on Bitcoin’s dominance in the market.
This dominance has been on an upward trend since mid-July, reaching a peak of 56.76%, just a few points away from a new three-year high.
Bitcoin’s dominance reached a high of 57.03% in April 2024, a level not seen since April 2021.
A major announcement from the Federal Reserve, expected in the coming days, could further boost Bitcoin’s dominance.
Federal Reserve’s Announcement and Market Sentiment
The Federal Reserve is set to announce its next decision on interest rates on July 31st.
Current market sentiment suggests that 96% of analysts expect the interest rates to remain the same in August.
If the Federal Reserve announces a rate cut, risk-on assets like Bitcoin could see a surge in demand.
However, if the rates remain unchanged, it may not significantly impact asset prices.
At present, the market sentiment heavily favors a rate cut of 25 BPS in September.
Bitcoin is currently trading at $69,503 after a 1.81% rally in the last 24 hours.
The $70,000 mark is a crucial price point as Bitcoin has faced resistance and a resurgence of sell pressure above this zone since March.
On the technical side, a push above $70,000 could lead to overbought conditions according to the RSI.
The MACD suggests that the bullish momentum may be slowing down.
These factors, along with the upcoming resistance zone, indicate a potential for a pullback due to short-term profit-taking.
However, the long-term outlook remains bullish, especially in the wake of the Bitcoin conference.
The event’s excitement has boosted confidence in other markets.
For instance, Japanese firm Metaplanet has reportedly purchased over 1 billion Yen worth of Bitcoin.
Metaplex’s stock has rallied by over 1,300% this year, with a significant portion of its stock price gains occurring in July as the company increased its Bitcoin purchases.
While this demonstrates some market confidence, Bitcoin’s ability to push above its current resistance zone depends on the level of demand it can maintain above those levels.
Bitcoin’s large holder netflow to exchange netflow ratio suggests that whales may not be moving much of their funds at the moment.
The potential flows that could influence Bitcoin’s dominance and price in the coming days will continue to be monitored.
