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Bitcoin’s Price Struggle Is Real, Will It Bounce Back Now?

By July 9, 20243 minute read

In the past few days, Bitcoin has been on an intriguing journey. It has reached its initial downside target of $55,000, a level that many analysts anticipated. This downtrend has led to a short-term oversold condition, suggesting that a countertrend rally could be on the horizon. What do you think?

Let’s quickly delve into the factors that could influence Bitcoin’s performance in the upcoming week and beyond.

Key Factors That Can Impact Bitcoin’s Price Soon

#1 Short-Term Trends and Macroeconomic Headwind

Bitcoin’s recent price action indicates that it has hit a critical support level, making it oversold in the short term. This oversold condition often precedes a rebound or a countertrend rally, where the price may rise temporarily before continuing its primary trend. Several macroeconomic factors could fuel this short-term rally.

One of the key drivers could be the broader macroeconomic environment. As global markets respond to economic data and policy changes, Bitcoin, often seen as a hedge against inflation and economic uncertainty, might benefit from positive macroeconomic headwinds. For instance, if there are indications of economic recovery or favorable fiscal policies, Bitcoin could see increased buying interest as investors seek to diversify their portfolios.

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#2 Ethereum ETF Approval: A Potential Catalyst

A significant event that could impact Bitcoin’s price in the near term is the potential approval of an Ethereum ETF by the U.S. Securities and Exchange Commission (SEC).

The approval of an Ethereum ETF would be a milestone for the crypto market following the success of Bitcoin ETFs. It would likely increase institutional interest and investment in Ethereum, which could have a positive spillover effect on Bitcoin.

Historically, major regulatory approvals in the crypto space have led to bullish sentiment and increased market activity. The anticipation of an Ethereum ETF approval could create a wave of optimism, attracting new investors and boosting the overall market sentiment. This increased interest and liquidity in the market could drive Bitcoin’s price higher in the short term.

#3 Inflation Data and Market Dynamics

Another critical factor to watch is the release of U.S. Consumer Price Index (CPI) data. CPI data is a key indicator of inflation, and it has a substantial impact on financial markets. High inflation readings often lead to concerns about the devaluation of fiat currencies, prompting investors to seek alternative stores of value like Bitcoin.

If the upcoming CPI data indicates rising inflation, it could strengthen the narrative of Bitcoin as a hedge against inflation, attracting more investors to the crypto. Conversely, lower-than-expected inflation readings could dampen this narrative, potentially leading to short-term price corrections.


While the short-term outlook for Bitcoin might seem promising, it is essential to approach the market with caution. The potential countertrend rally, driven by macroeconomic factors and regulatory developments, should not be mistaken for a long-term buying opportunity. The crypto market is inherently volatile, and short-term gains can quickly reverse.
Investors should consider the broader market dynamics and the risks associated with crypto investments. Major factors such as regulatory changes, market sentiment, and technological developments can all influence Bitcoin’s price trajectory. Therefore, staying informed and adopting a well-thought-out investment strategy is crucial.

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
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Harshita Shrivastava

Harshita Shrivastava is an Associate Content Writer with WazirX. She did her graduation in E-Commerce and loved the concept of Digital Marketing. With a brief knowledge of SEO and Content Writing, she knows how to win her content game!

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