Crypto

‘Crypto Winter’ May Exacerbate If Bitcoin Price Drops Below $20,000 -by Ecork

Bitcoin, Ethereum Forecast:

Recession fears remain a major catalyst for risk assets, Bitcoin and Ethereum edge slightly higher

After posting its biggest losing streak since 2014, Bitcoin is finally in the green, trading just above $20,000.

Such as critical psychological level The key remains for bulls and bears alike, the return of recession fears and monetary policy They have proven to be major catalysts for Bitcoin, Ethereum, and their altcoin counterparts.

While central banks Remain focused on high inflation for a decade, a brief summary of interest rate decisions that occurred over the course of the week and include:

with the hardcore narrative overburden feelingsThe massive sell-off of digital assets was exacerbated by its escalation Bankruptcy risk percentage (Cryptocurrency loan company) as well as a decision Coinbase reduced workforce by 18%.

The main technical levels of Bitcoin

After trading within a narrow range, consists of the key Fibonacci levels From the Movement 2020-2021 (purple) and Movement December 2020 – January 2021 (in blue), version Consumer Price Index in the United States Last Friday’s report enabled the bears to gain momentum, sending prices back towards the $20,000 handle, which continues to hold as a critical support while volume remains elevated, indicating that sellers continue to dominate. price movementat least for now.

Bitcoin (BTC/USD) daily chart

The graph was prepared by Tammy da Costa Using TradingView

While prices continue to trade at an 18-month low, Bitcoin has given up 70% of its gains (since the beginning of the year). For the bulls to push prices higher, a break of $22,000 and $22,802 could see a potential retest of $24,000.

However, if the bearish momentum continues, a break of $20,000 could trigger $18,000, opening the door to the December 2020 low at $17,580.

— By Tami Da Costa, Analyst for DailyFX.com

Connect with Tammy and follow her on Twitter: hahahahahahahaha

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