The extremely bullish momentum that had propelled Bitcoin to a year-to-date gain of 76% has already been extinguished, with the cryptocurrency sliding down by 3.6% over the last 30 days. The cryptocurrency did manage to show some strength, as it rallied to a sum of $29,600 on the 14th of August, but it was not able to reach the sum of $30,000 and currently remains below the key resistance level.
The low volatility, as well as the contraction, in the price of the cryptocurrency, have had certain analysts comparing the current market of BTC to the pre-bull cycle of 2015-17. The market structure of cryptocurrency had been on a path to recovery since the beginning of the year, but its recent action in the price has turned the entire market structure bearish. It is now considered to be contracting, according to the Capriole Bitcoin Macro Index.
The Price Of Bitcoin is On A Free Fall
Despite the price of Bitcoin technically contracting, Charles Edwards, the independent market analyst, still sees the price level of $30,000 as crucial. The start of the year saw shorts continually dominating liquidations in the futures market. Since the 12th of August, the trend has then shifted with the long liquidations of BTC- which then dominated 83% of all BTC liquidations on the 15th of August. When the BTC longs are liquidated without any buying pressure from the trading volume, the price of the cryptocurrency ends up being negatively affected. The volume of cryptocurrency has already touched the lowest levels since the early part of 2021.
The price of Bitcoin continues to be impacted directly by most macroeconomic events, and it is pretty likely that further regulatory actions and interest will continue having some effect on the price of BTC. The recent CPI print and the upcoming FOMC minutes on the 16th of August.