Bitcoin Stalls at $78,000 as Market Awaits Breakout
A sudden correction has stalled Bitcoin at $78,000, just as it did in May. The trigger was macroeconomic news from new Fed Chair Kevin Warsh, who pointed to high inflation rates and hinted at further rate hikes. This led to a market repricing and a drop in Bitcoin's price from $81,455 to $76,845.
The correction also had an impact on other cryptocurrencies, with Ethereum falling by 2.7% and Solana by 4.65%. However, the outflows from US spot Bitcoin ETFs were relatively small, suggesting that institutional investors may be taking profits rather than abandoning the market entirely.
Analysts are now watching for a daily close above $78,670 with volume behind it in order to confirm a breakout and target $81,455. However, if this level is rejected again, support levels of $74,450 and $72,170 may come into play.