Bitcoin Sidesteps Bad News, Eyes $80K Rally

The Bitcoin price has been stuck in a sideways trade, but some analysts think it's time for a rally to $80K. This comes despite recent negative news and a major AI hedge fund imploding.

According to data from Hyblock, the current view is that open interest is slowly rebuilding after a 5.2% flushout on July 21. As longs deleveraged leading into the FOMC meeting, they added to BTC's price weakness. Signs of a bearish reversal would include rising OI alongside a falling price and failure of $62,000 to hold.

Strategy executive chairman Michael Saylor explained why future Bitcoin sales were on the table during a Q2 earnings call. He added that upcoming fundraises might not be used to purchase more BTC. Strategy also announced a purchase of 288,930 shares of its Stretch (STRC) perpetual preferred stock on July 27 for $25 million.

Despite falling odds of CLARITY passing before the US midterm elections, Bitcoin's corporate bid fading and a market still wary of possible interest rate hikes, market structure for crypto majors continues to improve. This raises the real question of whether the bulk of the 'bad news' is already known and priced into Bitcoin and the wider crypto market.