Bitcoin Price Analysis: BTC Surges to $31,500 Before Retreating to $30,000

Bitcoin (BTC) hit $31,500 on multiple exchanges yesterday, the highest price this year. However, the price then plunged back to $30,000. Bitcoin even broke as low as $29,700 last night, but seems to be finding some traction above $30,000 this morning.

At the time of writing, the BTC price stands at 30,120 on Binance and $27,672 on Bitvavo. This puts the bitcoin price down 2.4% today. The total market capitalization is $586 billion and the dominance is 49.9%. The Fear & Greed Index comes out at 55 (Greed).

Strong jobs report sparks fear

Yesterday, US stock markets also closed in the red. That followed after a US jobs report came in much higher than expected. The so-called ADP Private Employment reported an increase of 497,000 jobs while 220,000 were expected. It is the strongest increase since December.

This is not interpreted as good news by many financial markets. According to the CME FedWatch Tool, 90% of the market now expects the US central bank to raise interest rates by 0.25% in July. However, this decision will not follow until July 26. For today, the following macroeconomic data are worth keeping an eye on:

Bitcoin holders again in profit this year

As bitcoin was once again rejected around the top, we see market sentiment turning somewhat. Nevertheless, about 78.5% of bitcoin owners are in profit due to this year’s strong price increase, reports analysis firm IntheBlock. The last time this was this high was in March 2022, when the price was still around $47,000.

Huge amount of BTC to exchanges

However, short-term holders seem less confident at the moment. They have sent a whopping 617,000 BTC, worth $18.5 billion, to exchanges in the past 20 days. That is most likely to sell the gigantic amount of BTC.

What if $30,000 doesn’t hold up?

Should bitcoin fail to hold on to $30,000, many analysts, including Skew, see a lot of demand between $28,000 and $29,500. This region could therefore swing from resistance to support and cause a bounce.

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