- This September 19 Bitcoin touched the $18,390, a price that had not been touched for more than three months.
Since the peak of November of last year, the cryptocurrency market has turned red and fewer and fewer see a positive scenario in the short term. Overcome fear, uncertainty, and analysts believe that BTC has not yet found its floor. All of this comes after digital gold broke through a 90-day low.
The week of September 19 did not start well for the main cryptocurrency. After having found resistance at $22,500 dollars, it fell to $18,390, a price that it had not touched for more than three months. It is worth noting that the annual minimum of Satoshi Nakamoto’s creation is 17,700.
“The macroeconomic environment continues to control the direction of financial assets, including Bitcoin,” Analysts at cryptocurrency-focused investment firm Nydig had written on Friday and boy were they right…
FED Announcements Affect Bitcoin Price
For this week, a probable rise in interest rates is expected at the Federal Reserve meeting and this could be another blow to Bitcoin, although in theory it should be different (unlike the dollar, it is not inflationary and “print” limited). The background shows that BTC lost every time the authorities increased the interest rate.
Ethereum, for its part, after the boom that meant the transition from Proof of Work to Proof of Stake, also fell sharply. Even its fall was greater than that of BTC in the last week, although it did not touch minimums: it reached $1,331 and in the last 90 days it went through $1,009 dollars.
The analyst Omkar Godbole, to CoinDeskrevealed that he sees a bleak future.
“The yield on US inflation-indexed bonds has risen 100 basis points (one percentage point) since the beginning of August, sparking new jitters in risk assets including cryptocurrencies.“, wrote.
Scholars at FXPro, the UK-based online investment firm, also agreed that lThe next movements of BTC can be bearish again.
The theory arises from technical analysis by the “confluence of the downtrend line and the key long-term moving averages suggests a resumption of the broader downtrend…The bear market was confirmed by BTC-USD actively selling after testing the 50-day moving average“, analyzed this Monday the British company founded in 2006.
On Friday of last week, Brian Cubellis had already expressed the possibility of Bitcoin falling back and assured that the floor is at 17,400, which is lower than what happened in mid-June. If you break it, there will be a bigger setback.
“If we break $17,400 decisively, $14,800 is the next support level.”developed Cubellis.
Bitcoin answer?
At the time of writing this article, Bitcoin had shown some recovery and had left behind the $18,000 to position itself at $19,500. The movements of the next hours will be decisive to know if it will go in search of the ceiling or the floor.
The world of cryptocurrencies is not only waiting for the price of Bitcoin, but also for the announced by the Fed. It is estimated that it will be a week of great news within the economic plane.
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