3 reasons why Bitcoin struggles to return $20,000 to support

BTC continues to sell, but analysts say investor sentiment could reverse when inflation peaks or traders believe the situation with insolvent DeFi platforms is resolved.

Market Update

The positive gains seen in the first ten days of July all but disappeared on July 13 as Bitcoin (BTC) and the broader market slid to new yearly lows.

The subdued market action can be attributed to a variety of factors, from the record July 13 Consumer Price Index release to a raging U.S. dollar that recently hit its highest level since October 2002.

Data from Cointelegraph Markets Pro and TradingView shows that July 13 marked the fifth consecutive day of a decline in the price of BTC, which hit an intraday low of $18,910, following declines in major stock indices.

BTC/USDT 1-day chart. Source: TradingView

As the world awaits a catalyst that can restore positive momentum to global financial markets, here's what several analysts have to say about the future of Bitcoin.

Was Bitcoin's latest surge the result of a washout trade?

Bitcoin's gains over the past week have sparked a fresh wave of optimism among some traders, but that optimism is likely to fade in the near term. Data from Arcane Research shows that most of the impetus came from the removal of trading fees for certain bitcoin pairs on the Binance cryptocurrency exchange.

Bitcoin Actual Daily Volume (...