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BTC/USD Analysis: Breakdown of July Support

Yesterday, the price of BTC/USD fell below the level of 29,700, a support that has been in place for about a month.

What are the reasons for the decline? CNBC writes about:

  • strengthening of the USD on the eve of the Fed’s meeting on the interest rate, which puts pressure on the price of bitcoin, denominated in US dollars;
  • an article in the WSJ raising concerns for the crypto industry in light of the pending SEC lawsuit against Binance.

Note that in our previous post, we pointed out a sign of weakness, which manifested itself in the inability of the bulls to take advantage of the positive from Ripple Labs’ victory in court with the SEC, and also built a downward channel (shown in red). Yesterday, on the chart, the price of BTC/USD reached its lower limit, where it found support.

Will the price of bitcoin continue to develop dynamics within this channel? A lot depends on the Fed. The decision on the key interest rate will be announced tomorrow at 21:00 GMT+3. And at 21:30 Powell will hold a press conference.

We also draw attention to the fact that:

  • news on the interest rate from the ECB will be released on Thursday at 15:15 GMT+3;
    on Friday at 06:00 GMT+3, a similar event from the Bank of Japan.
  • Be prepared for bursts of volatility, including in the BTC/USD market.

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