Bitcoin’s struggle against the $23,000 range is far from over as the cryptocurrency tries to sustain the selling pressure coming from bears for the third day in a row.
Back on July 20th, we saw the first signs of a reversal for BTC as the first cryptocurrency pulled back from its local high of $24,280. The reason behind such a rapid drop in value was covered in a recent U.Today cryptocurrency market review.
Following the reversal, the market faced a series of massive inflows that led to a further decline in the $23,000-$22,300 price range. Fortunately, the massively oversold bitcoin did not bounce back into the consolidation range formed since June.
fundamental factors are irrelevant
One of the biggest “bearish” news for the industry this week was a 75% reduction in the supply of bitcoin on Tesla’s balance sheet. The decision to sell available BTC holdings was made in order to recover the company’s positive cash flow and has nothing to do with the state of the cryptocurrency market.
Despite the big sell-off, bitcoin remained unfazed as the market had already felt the impact of the massive $900 million sale, and the impact of Musk’s decision no longer had the same impact on the market as we had seen before.
The second event that could have shifted market sentiment from neutral to bearish was the ECB’s first major rate hike in 11 years. Fortunately, no volatility has been observed in the cryptocurrency market, indicating that most of the investors have either surrendered or are not following the macro-environment.