Analysts continue to identify $16,000 as a downside objective, so investors must have a contingency plan in place.
On June 23, Bitcoin (BTC) saved $20,000 for another day, with calls for another 20% plunge still circulating.
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| 1-hour candle chart of BTC/USD (Bitstamp). TradingView is the source. |
Bitcoin under $10,000 is not unattainable.
Data from Cointelegraph Markets Pro and TradingView shows BTC/USD fluctuating slightly around $20,000 in the 24 hours leading up to the time of writing.
As usual, the behavior mirrored movements in the US equity markets, which remained flat on the day.
Federal Reserve Chair Jerome Powell's remarks produced just momentary turbulence. Powell's congressional hearing, according to Cointelegraph, presented no fresh information on macroeconomic policy.
As a result, crypto analysts kept to prior assertions: the prognosis remained uncertain, but a potential new slump might only include a journey to $16,000.
"$BTC is consolidating in a large range and then rising. MDD (maximum drawdown) is not as large as -20 p "rcent ," Ki Young Ju, CEO of CryptoQuant, an on-chain analytics platform.
Ki shared research from prominent account Il Capo of Crypto, whose BTC forecasts have long predicted price declines.
Ki said in a second post that "most Bitcoin cycle indicators are signaling the bottom" is in, and that shorting BTC at present prices is consequently risky.
"I'm not sure how long it would take for this range to consolidate. Opening a large short position now does not seem like a smart idea unless you believe $BTC will go to zero "He wrote something.
However, there was reason to be more risk adverse while monitoring resource Material Indicators.
"At this point, nobody can predict with certainty if BTC will retain this range or whether it will ever return to sub-$10,000 price levels, but it would be crazy not to plan for that eventuality," a tweet suggested.
"In crypto, the word 'never' does not age well. Plan ahead of time."
The Fed has no plans to "de-COVID" its balance sheet.
In new macro news, rising natural gas prices on a diminishing supply picture put more pressure on the Eurozone.
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| Balance sheet of the Federal Reserve (screenshot). Federal Reserve is the source. |
Meanwhile, Powell made new comments about the Fed's monetary tightening stance in the United States.
According to media reports at the time of writing, the central bank's balance sheet reduction reportedly only aimed to cut up to $3 trillion off its near $9 trillion in asset purchases.
Since February 2020, the Fed's balance sheet has grown by $4.8 trillion, implying that even after the cutbacks, it will be larger than it was before the epidemic.
Meanwhile, despite rising inflation, the European Central Bank's balance sheet reached new all-time highs this week.
The author's thoughts and opinions are completely his or her own and do not necessarily reflect those of Cointelegraph.com. Every investment and trading activity entails risk; thus, before making a choice, you should perform your own study.
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All images culled from Google search.
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