Bitcoin (BTC) avoided losses as US stocks fell at the open on Wall Street on July 14, but traders remain nervous.
Analyst: ‘No way’ bitcoin has bottomed out at $17,500
Data from Cointelegraph Markets Pro and TradingView tracked the BTC/USD pair as it hovered around $20,000 on the day.
Wall Street opened lower, with the S&P 500 and the Nasdaq Composite Index down about 1.8% at the time of writing.
Nevertheless, Bitcoin managed to hold its own as the largest cryptocurrency’s correlation with stocks fell to its lowest levels of 2022 so far.
That said, few were willing to say the worst was over for the hodlers.
“This has been a weak bounce so far. Another possible bearish continuation…”, summarized macro analyst Aksel Kibar to his Twitter followers.
Popular analyst and social media personality Michael Suppo, meanwhile, I expected a low below June levels, close to USD 17,500, thanks to a cocktail of macroeconomic factors.
“There is no way $17,500 is the bottom of Bitcoin”he claimed.
Others expected higher support levels to hold before retesting existing multi-month lows.
13.7K is a possibility that we’ve been watching for 10 months now. #bitcoin will not hit 13.7K unless we lose 19.5K as support.
19.5K is holding really well so far. The bottom is likely in or very close to being in but most will miss the bottom while waiting for lower prices pic.twitter.com/AJF5ye0ntn
— Steve Courtney ~ Crypto Crew University (@CryptoCrewU) July 12, 2022
$13,700 is a possibility that we have been eyeing for 10 months. Bitcoin will not go to $13,700 unless we lose the $19,500 level as support.
$19,500 is holding up very well so far. The bottom is probably in or very close to it but most will miss the bottom while waiting for lower prices.
“BTC has experienced most of its downtrend acceleration phase”continued fellow analyst Rekt Capital with a slightly more optimistic outlook.
“Once this phase is completed, the Consolidation phase of several months will follow.”
US dollar cools off after another record high
The macro story of the day continued to be the US dollar, which continued to hit new 20-year highs against a basket of trading partner currencies.
Between them, the euro and the Japanese yen, which fell to their lowest since the beginning of the century against the dollar. EUR/USD fell below parity.
The dollar keeps strengthening, with DXY now at its highest level since 2002. This is a euro story, with fears of recession growing on the heels of a potential gas cutoff, and a yen story, with Japan’s extreme monetary policy divergence. But it’s also the stuff-a-mattress trade pic.twitter.com/tfk9GvTqOM
— Lisa Abramowicz (@lisaabramowicz1) July 12, 2022
The dollar continues to strengthen, and the DXY is now at its highest level since 2002. It is a euro story, with recession fears growing in the wake of a potential gas cut, and a yen story, with the extreme divergence from Japan’s monetary policy. But it is also the save operation in the mattress.
At the time of writing, the US Dollar Index (DXY) was hovering around 108.9 after hitting its high of 109.29.
“No one wants fire insurance during a flood, and no one wants dollar value insurance with the Fed pumping $DXY through rate hikes and recession”, commented Reddit and Twitter user TheHappyHawaiian in part of a post discussing the impact of a strong dollar on silver prices.
As Cointelegraph reported, TheHappyHawaiian also claimed that the Fed would soon have no choice but to reverse the rate hikes or risk “blowing up” the economy.
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