Bitcoin price is on course to register its first monthly decline since March, as a mix of fundamental shifts exert downward pressure. The crypto market bellwether traded at $116,585 at the time of writing, having recovered substantially from six-week lows of $111,658 in intraday trading. The coin’s return above $115k comes as a reprieve for investors, shaking off a broader market market sentiment that has seen extended profit booking following an uptrend stretching back to late June.
Technical metrics on BTC price signal neutral-to-bearish conditions on the daily chart, with the Relative Strength Index (RSI) at 51 as of this writing. In addition, at its current level, the coin has gone below both 10-day MA ($116,325) and 20-day MA ($116,237), adding weight to the downside narrative. Meanwhile, Bitcoin’s ETF performance has also dropped, and has recorded five successive days of net outflows.
The ETF market downtrend is reflective of the current market sentiment, with eyes on macroeconomic fundamentals. Investors hopeful that the Federal Reserve’s interest rate decision in September will usher an era of low interest rates, with Chairman Jerome Powell’s comments at Jackson Hole interpreted as dovish.
However, recent inflation data showed that price increases are still above the central bank’s target, and that could delay the cuts beyond September. Also, the ongoing sell-off of tech stocks and underperformance by AI stocks points to a risk-off sentiment. That doesn’t favour high-risk assets like cryptocurrencies and could limit gains by Bitcoin.
Bitcoin Price Prediction
Bitcoin price pivot mark is at $115,670 and the coin will need to stay above that level to maintain the upside traction. With the buyers in control, BTC will likely find initial resistance at $116,980. Breaking above that level will signal a stronger momentum that could extend gains to test $118,030.
Conversely, action below $115,670 will shift the momentum to the downside, with primary support likely to be at $114,710. Breaking below that level will invalidate the upside narrative. Also, the resulting momentum could extend the decline and potentially test $113,540.
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