Pre Open US - Bitcoin 28 July 2023

Bitcoin's current investor sentiment remains neutral, leaving the market at a critical decision point. Following a recent sharp decline, the cryptocurrency stabilized around $29,000 and briefly showed signs of potential recovery when the US Federal Reserve raised interest rates. However, the subsequent surge lost momentum, and if indecisiveness persists in the coming days, Bitcoin stagnation may endure, with potential moves in either direction unlikely to be sustained for long.

Recently, the U.S. Congress embarked on its first-ever markup for digital asset legislation to establish clear jurisdiction for the nation's chief market regulators. The bill, however, faced resistance from Democrats who viewed it as overly favorable to the crypto industry, resembling the stance advocated by FTX boss Sam Bankman-Fried. The movement towards regulating the crypto industry in the USA appears to be imminent, especially given the recent remarks from Jerome Powell acknowledging the industry's importance in the finance sphere and its significant presence. Additionally, the awaited legislation from Europe is expected to further enhance the credibility and adoption of cryptocurrencies.

Technically, Bitcoin (BTC) broke the 29700-support level that was held for one month, taking the price towards the next target at 28000, where the 100MA may also help the price find support there. After that, the 27300 level will be the next support, located at the lower parallel of the actual long bullish channel.