Why Can’t Bitcoin Rise?
2:49 am (75 days ago)
July 22, 2023
The king of cryptocurrencies continues to be frustrating for investors. But why can’t it rise despite all the positive news? Investors who thought that the crypto summer season had arrived after BlackRock were greatly disappointed. Let’s discuss the general outlook of altcoins, especially in relation to the DOT Coin, and see what will happen.
Why Bitcoin Can’t Rise?
The price, which recently rose above $30,000 again, could not stay there permanently. At the time of writing, it continues to find buyers at $29,860. There are many reasons for the weakness in the price of Bitcoin. We can list them briefly as follows:
- The Federal Reserve meeting will take place next Wednesday. Cryptocurrencies usually perform negatively before meetings where interest rate hikes are likely. Bitcoin is doing the same. Moreover, since it has been confirmed that there will be 2 more interest rate hikes this year, we feel the negativity of this as well.
- The summary judgment of the Ripple case increased the demand for some altcoins. This naturally led to a decrease in demand liquidity in support areas for Bitcoin buyers.
- There are ongoing strong speculations that the US Department of Justice will soon file a lawsuit against BinanceUS and Binance Global.
- As we announced the other day, the US Department of Justice moved 8,200 BTC. Although there are strong suspicions (on-chain evidence) that some of the Silkroad BTCs were sold, the official announcement has not yet been made. Its arrival in the next few hours could cause a sudden drop (in addition) to occur.
- The optimism that the approval of the Spot Bitcoin ETF would come soon disappeared after more than a month. Experts do not expect a decision before the first quarter of next year.
- Bloomberg believes that the US economy will officially enter a recession in the last two quarters. This means that stocks indirectly cannot find buyers for cryptocurrencies.
How Much Will DOT Coin Be Worth?
Despite the upward trend and bullish market structure, bulls cannot overcome the sell order block between $5.63 and $5.88 in the DOT Coin market. However, the situation of BTC is causing similar results for most altcoins. So, even if the conditions are neutral, the charts that are expected to rise are forced to turn south due to the negative sentiment caused by many reasons mentioned above.
The $5.23 support in terms of DOT Coin is an area that bulls should not lose. The price cannot overcome resistance levels due to BTC, and in the worst-case scenario, if the decline in BTC accelerates, we may see that this support is also lost. Especially on weekends, decreasing volumes can increase volatility, so it can be beneficial for futures traders to be more cautious.