Bitcoin trader predicts $18K return within days as stocks wilt after CPI
Bitcoin (BTC) cooled near $19,200 after the October 14 Wall Street open as stocks struggled to maintain their “bear trap.”
Analyst: ‘Abandon all hope’ for asset price decline
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it came off one-week highs on the day to circle $19,300.
The pair had seen intense volatility on the back of US economic data the previous day, triggering hundreds of millions of dollars in liquidations from both long and short positions.
Now, after turning the tables and adding nearly $2,000 in 24 hours, Bitcoin again lost momentum as US stocks turned red on the day.
At the time of writing, the S&P 500 was down 1.9%, while the Nasdaq Composite Index was trading a horrific 5.4% lower.
Alasdair Macleod, head of research at Goldmoney, examined the status quo, pointing to sharp gains in long-dated US bonds as a key factor in the pressure being felt across markets.
“US Try bond yields continue to rise,” he commented.
“As long as this is the case, give up all hope of financial asset values.”
The US dollar index, a classic headwind producer for risk assets, made strong gains on the day, passing 113.4 before consolidating.
With the September Consumer Price Index (CPI) released, sentiment was now overwhelmingly directed at the Federal Reserve deciding on a further 75 basis point interest rate hike in November.
According to the CME Group’s FedWatch Tool, the odds of a lower 50-point hike were just 2.1% as of Oct. 14.
Macleod, meanwhile, noted that even under existing dollar strength, major world currencies were showing increasing strain, among them Japanese yen and increasingly the Chinese yuan. The former traded at a 34-year low against the US dollar on the day.
Pundits see BTC bears winning out
Planning ahead, Bitcoin analysts continued to favor downside regaining control of short-term BTC price action.
Related: Bitcoin Bear Market Will Last ‘Maximum 2-3 Months’ — Interview with BTC Analyst Philip Swift
Il Capo by Crypto repeated an existing theory involving a push to near $21,000 before a new macro bottom sequence followed.
Closer to home, Jibon, known as Trader_J, saw the current highs end at or above $20,000, with a trip to the lowest close to $18,000 on the menu in the coming days.
For Michaël van de Poppe, founder and CEO of trading company Eight, the current spot price was an important line in the sand.
“Bitcoin broke up even more and the area around $19.4K is important to maintain,” he concluded on the day.
“Probably long range. If it holds, we can finally project $20.8K and $22.4K.”
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