The price of bitcoin (BTC) dipped below $20,000 again on June 29 as analysts remained hopeful for a trip higher.
Traders look for support at $19,500
Data from Cointelegraph Markets Pro and TradingView recorded that BTC/USD crossed below the $20,000 mark for the first time in nearly a week in Asian trading hours.
The weakness followed range-bound behavior near $21,000, characterizing a market still in tune with global equity moves..
The S&P 500 had ended its previous session down 2%, while the Nasdaq Composite Index lost 3%. On the day, Hong Kong’s Hang Seng was also down 2.1%, while China’s Shanghai Composite Index traded 1.4% lower..
With few bullish signs coming from the macroeconomy, bitcoin could not avoid revisiting the lower end of a range that has been in place for several weeks.
“Bitcoin is giving that correction. I was anticipating a potential low at $20,300,” Cointelegraph contributor Michaël van de Poppe wrote. part of his last twitter update bitcoin-centric.
“We hit $20,100 which is the second major level… We would like to see it hold here and see additional confirmation on LTF. If it doesn’t, the $19,300-19,500 level would be the next support.”
By expanding the scope, other sources remained optimistic about the possibility of reaching resistance higher.
For the Material Indicators on-chain analytics resource, this could still come in the form of a challenge to the 200-week moving average, a key bear market support level, which had started to function as resistance in June.
Trend Precognition is flashing a pretty strong Long signal on the #BTC Weekly chart. Signal won’t print until the W candle closes, but indicates that we could see a run at the 200 WMA this week. Happy to test the lows first. For me, sub $17.5k invalidates. #NFA pic.twitter.com/hvs1as44qG
— Material Indicators (@MI_Algos) June 28, 2022
Trend Prec is showing a pretty strong long signal on the weekly BTC chart. The signal will not print until the close of the W candle, but it indicates that we could see a run on the WMA 200 this week. Glad to try the lows first. For me, sub $17,500 invalidates. NFA pic.twitter.com/hvs1as44qG
Stocks continue to slide
Focusing on the macro, commentators argued that with little certainty about available economic strength, risky assets like cryptocurrencies would continue to suffer over longer time frames.
The mood followed Big Short investor Michael J. Burry’s prediction that the US Federal Reserve would abandon its inflation-fighting quantitative tightening (QT) policy in 2022 and return to more accommodative conditions..
“Deflationary pulses from this –> CPI disinflation later this year –> Fed reverses rates and QT –> Cycles”says part of a Tweet published on June 27.
Therefore, only a clear bonanza for risk assets would allow bitcoin and altcoins some slack, the popular TXMC Trades Twitter account responded, and this outlook echoed the opinions from various commentatorsincluding former BitMEX CEO Arthur Hayes.
Despite the dreams of decouplings, #bitcoin is unlikely to grow in a sustained way unless the economy also shows significant improvement, as they are undeniably linked.
With regional data slipping toward contraction, the near term path remains unattractive. https://t.co/qpuPsYm07P pic.twitter.com/WT3TjKHiKD
— TXMC (@TXMCtrades) June 28, 2022
Despite the dreams of decouploors, bitcoin is unlikely to grow on a sustained basis unless the economy also shows significant improvement, as they are undeniably linked.
With regional data slipping into contraction, the short-term path remains unattractive. https://t.co/qpuPsYm07P pic.twitter.com/WT3TjKHiKD
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