Bitcoin price rose to $62,700 this weekend as traders reacted to Thursday’s ETF inflows and weak US non-farm payrolls (NFP) data. BTC was trading at $62,710, up modestly from the year-to-date low of $57,828. Still, there is a risk that the ongoing rebound is a dead-cat bounce.
Bitcoin Price Steady Amid ETF Inflows
BTC price has staged a minor rebound in the past few days as the ETF recorded its first inflows in over 10 days. The data show that these funds added over $221 million on July 2nd.
Most of these inflows went to Fidelity’s FBTC, which added $165 million in assets. Ark Invest’s ARKB added $91 million in assets, while VanEck’s HODL added $4.35 million. These gains were offset by the $40 million outflows from BlackRock’s IBIT. Still, Bitcoin ETFs have already lost $72 million this month after losing over $4.9 billion last month.
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Bitcoin price also jumped after the US released the latest non-farm payrolls (NFP) data. A report by the Bureau of Labor Statistics (BLS) showed that the economy added over 57k jobs last month, missing the expected 114k. The BLS also revised the previous report downward, showing that the economy created 129k jobs in May.
As a result, investors anticipate that the Federal Reserve will not hike interest rates this year. Before the report, there were signs that the bank would hike rates to combat the elevated inflation. Odds of a rate hike have dropped to 48% from 56% on Polymarket.
Bitcoin has also benefited from the falling oil prices. Brent and the West Texas Intermediate (WTI) have fallen to $71 and $67, raising the possibility that inflation will be contained. The average gasoline price has dropped from $4.5 earlier this year to $3.8 today.
The biggest risk that the BTC price faces is the potential sale by Strategy. Michael Saylor has hinted that he will sell Bitcoin coins worth over $1.5 billion to fund its dividend payouts. There is also a risk that the company will not buy Bitcoin in the near future.
BTC Price Prediction: Technical Analysis
The daily chart shows that Bitcoin has rebounded in the past few days, moving from a low of $58,000 to the current $62,670. It has moved above the key resistance at $60,155, its lowest level in February.
The coin has formed an inverted cup-and-handle pattern, a common bearish reversal sign. It has also remained below the 50-day Exponential Moving Average (EMA).
Therefore, the coin will likely resume the downtrend as sellers target the key support of $62,700. A drop below the year-to-date low of $57,828 will invalidate the bullish outlook.
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