For the past month or so, bitcoin prices have been trading in a relatively narrow range, between $30,000 and $31,500, as bulls and bears battle for control during a prolonged period of price consolidation. right.

The same happened in March 2023, but for a shorter period of time. At that time, the cryptocurrency kept fluctuating in the range of 26,000-28,000 US dollars, and then broke through the 30,000 US dollars mark, but encountered greater resistance in April. As the selling pressure increased, Bitcoin finally fell below 25,000 dollar mark.

In the following April, the market performance was mixed; after entering the summer, as the Federal Reserve announced in May that it would continue to raise interest rates, the price of Bitcoin fell; in June, due to the SEC filing a lawsuit against cryptocurrency traders, The market experienced a further downturn; however, when BlackRock filed a Bitcoin spot ETF, the negative impact of the SEC was quickly offset, and positive sentiment once again permeated the market.

With the price of Bitcoin back in the $30,000 range, which is considered a psychological support level for the cryptocurrency, on the back of major positive news, the focus now is on how Bitcoin will break out of the immediate correction range.

It is worth noting that after the release of inflation data in the United States last week, the market’s attention has turned to the Federal Reserve. Although the overall inflation rate has shown a downward trend, core inflation remains high, leading the market to expect that the Fed will increase this month. The interest rate level of the Federal Reserve is an important benchmark for risk markets and has brought greater upward pressure on Bitcoin.

On the other hand, as summer temperatures rise, the cost of mining may increase, and even if the upward price is a favorable condition, it is still a hindrance for the cryptocurrency market. Bitcoin encountered selling pressure as it attempted to breach the $31,500 resistance level, causing it to fall back to the lower end of its trading range and lose recent gains.

(Bitcoin price chart, via Investing.com)