Bitcoin analysts weigh a drop of less than $ 17.5K after “weak” BTC price jump
Bitcoin (BTC) avoided losses when US stocks plunged at the Wall Street opening on July 14, but traders remained nervous.
Analyst: “No way” Bitcoin reached the bottom of $ 17,500
Data from Cointelegraph Markets Pro and TradingView followed BTC / USD as it lasted around $ 20,000 a day.
Wall Street opened with losses, the S&P 500 and Nasdaq Composite Index both fell around 1.8% at the time of writing.
Bitcoin still managed to hold on as the largest cryptocurrency’s correlation to equities fell to its lowest levels in 2022 so far.
That said, few were willing to say that the worst was over for hodlers.
“This has been a slight upswing so far. Another possible bearish continuation …,” macro analyst Aksel Kibar summarized to Twitter followers.
Popular analyst and social media personality Michael Suppo, meanwhile expected a lower low than June near $ 17,500 levels thanks to a cocktail of macroeconomic factors.
“No way is $ 17.5k the bottom line for Bitcoin,” he bet.
Others hoped that higher levels of support would hold up before a new test of existing lows of several months.
13.7K is an opportunity we have seen for 10 months now. #Bitcoin will not hit 13.7K unless we lose 19.5K as support.
19.5K holds up very well so far. The bottom is probably in or very close to being inside, but most people will miss the bottom while waiting for lower prices pic.twitter.com/AJF5ye0ntn
– Steve Courtney ~ Crypto Crew University (@CryptoCrewU) July 12, 2022
“BTC has experienced most of its downtrend acceleration phase,” continued trader and analyst Rekt Capital with a slightly more optimistic perspective.
“Once this phase is complete, the multi-month consolidation phase will follow.”
US dollars cool after another record
The macro history of the day remained the US dollar, which continued to reach new 20-year highs against a basket of trading partner currencies.
Related: How Bitcoin’s Strong Correlation to Equities Can Trigger a Fall to $ 8,000
These included the euro and the Japanese yen, both of which fell to the lowest level since the turn of the century against the USD. EUR / USD fell below parity.
The dollar continues to strengthen, with the DXY now at its highest level since 2002. This is a euro story, with fears of a recession growing on the heels of a potential gas outage, and a yen story, with Japan’s extreme monetary policy divergence. But there is also the thing-a-mattress trade pic.twitter.com/tfk9GvTqOM
– Lisa Abramowicz (@ lisaabramowicz1) July 12, 2022
At the time of writing, the US Dollar Index (DXY) was around 108.9 after reaching the top 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 recessions,” Reddit and Twitter user TheHappyHawaiian commented in part of a post discussing the impact of a strong dollar on silver prices.
Like Cointelegraph reportedTheHappyHawaiian also stated that the Federal Reserve would soon have no choice but to reverse the rate hikes or risk “inflating” the economy.
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