Bitcoin Sets Up Crunch Climax to July

Bitcoin (BTC) is gearing up for a dramatic end to July, with the $70,000 mark looming large. Bulls are striving to reclaim lost support at crucial psychological levels.

As Bitcoin returns to price points unseen in nearly two months, the question on everyone's lips is whether the bulls can succeed.

The weekly close offered a glimmer of hope, saving the market from a "red" candle. However, continued momentum is crucial. On paper, the situation looks promising.

Miners are recovering, macroeconomic signals are increasingly favoring risk assets, and traders are betting on the end of Bitcoin's post-halving retracement.

Bitcoin Bounces Back

Bitcoin bulls received a last-minute boost at the latest weekly close, with the one-week candle turning red to green.

At approximately $68,265 on Bitstamp, Bitcoin rounded out a hectic weekend at a launch level for further gains into the July 29 Asia trading session. New multi-week highs followed, with BTC/USD reaching $69,848 for the first time since June 10.

Traders are in a positive mood as Bitcoin approaches key resistance below March's all-time highs. "Every halving event, Bitcoin goes through a couple of months of choppy price action," famous trader Jelle noted. "Once that phase ends, the true bull market starts. This time probably won't be different."

FOMC Week and US Debt Milestone

As the US national debt hits $35 trillion for the first time, Fed Chair Jerome Powell has the power to move crypto markets. His press conference following the latest Federal Open Market Committee (FOMC) decision on interest rates can set longer-term expectations for economic policy. Markets anticipate no rate cuts until the next FOMC meeting in September.

The latest estimates from CME Group's FedWatch Tool suggest a 96% chance of rates staying the same this month. Conversely, they fully price in a cut for September.

These cuts are crucial for crypto and risk-asset traders, as they should boost overall investment liquidity. US jobless claims will follow the FOMC, providing more potential for surprise crypto market moves.

Bitcoin Mining Difficulty Set for New Highs

Bitcoin network fundamentals are showing solid signs. The latest estimates from BTC.com indicate that on July 31, Bitcoin mining difficulty will hit new all-time highs.

This follows a 3.2% uptick from two weeks prior, taking the difficulty to 88.61 trillion. As Cointelegraph reported, a miner renaissance has been on the cards, evidenced by both hashrate and the hash ribbons indicator calling the end of miners' post-halving "capitulation" phase.

Concerns Over BTC Miner Selling

Analyzing the overall profitability of the mining sphere, the on-chain analytics platform CryptoQuant warned that it is still in the early days of its comeback.

The miner position index (MPI) remains at a "shallow level," suggesting some selling pressure. XBTManager noted, "After a support level of $53,000, miner outflow continues to rise." Bitcoin has been observed leaving miner wallets at the current price level, potentially creating selling pressure.

The classic crypto market sentiment indicator is on the verge of returning to "extreme greed," with Fear & Greed measured at 74/100 on July 28.

This marks a significant 50-point increase in just two weeks. As bullish sentiment among crypto traders reaches its highest in weeks, the market watches closely for Bitcoin to tackle the final hurdles before price discovery.