Bitcoin Price: BTC Needs to Break $31K For More Upswing

Bitcoin price was trading higher on Tuesday, wiping its losses from its previous three trading sessions. The crypto market leader has failed to break past the critical level of $31,000. Even so, BTC has made a significant recovery, jumping 14% in the past week and more than 85% in the year to date, ranking it the best-performing cryptocurrency so far this year. At the time of writing, BTC price was trading 1.45% higher at $30,710.15.

Economic Outlook

Bitcoin price has staged a strong recovery in the past few weeks in the wake of bullish crypto sentiment. Data by Coinmarketcap shows that the global crypto market cap has jumped to $1.19 trillion, with Bitcoin’s dominance hitting 50% for the second time this month, its highest level since the start of the year.

The bullish sentiment in the cryptocurrency industry has been buoyed by better-than-expected economic reports and a weaker dollar. The US Dollar index has been in the red for two consecutive days as the latest economic data indicated that the US economy remained resilient. The greenback retreated further after data showed that new orders for US manufactured capital goods surprisingly rose in May.

 Additionally, the Conference Board Consumer Confidence Index climbed to 109.7 in June, down from 102.5 in May, hitting its highest level since January 2022. The Expectations Index, which measures the consumer’s short-term outlook on income, business, and labor market rose to 79.3, slightly below 80- the level associated with a recession in the next year.

The focus will be on the Personal Consumer Expenditure (PCE) index report for May, scheduled for release later on Friday. Investors will also be monitoring talks among Federal Chair Jerome Powell, Bank of England Governor Andrew Bailey, Bank of Japan Governor, Kazuo Ueda, and European Central Bank President Christine Lagarde slated for Wednesday.

Bitcoin Price Technical Analysis

The daily chart shows that the Bitcoin price has been trading sideways for the past few days after facing a strong rejection at $31,000. The digital asset has managed to remain above the 50-day and 200-day exponential moving averages, as well as the 50-day and 100-day simple moving averages. Its RSI has remained around the overbought zone, with the MACD indicator supporting the bullish outlook.

Consequently, the Bitcoin price is likely to remain above the critical $30K level in the immediate term as buyers eye the next resistance levels at $33,000 and $35,000. However, for this to happen, the BTC price must clear the major hurdle of $31,000.

BTC Price Chart

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