Bitcoin (BTC), which was under $20,000 as analysts still believed that it would rise, returned to below $20,000 on June 29,
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Support for traders: $19,500
Data from TradingView and Cointelegraph Markets Pro followed BTC/USD’s crossing below $20,000 for the first time in almost a week during Asian trading hours.
This was due to a rangebound behavior of around $21,000 that characterized a market still in tune and in sync with global equities moves.
The S&P 500 finished the previous session with a 2% decline, while the Nasdaq Composite Index was down 3%. The Hang Seng in Hong Kong was also 2.1% lower on the day. However, China’s Shanghai Composite Index traded 1.4% lower.
Bitcoin was able to revisit the lower end of its range for several weeks despite not receiving any bullish cues from macro.
“Bitcoin was giving that correction, and was anticipating an eventual low at $20.3K,” Michael van de Poppe, a Cointelegraph contributor, wrote in his latest Bitcoin-focused tweet update.
“We get $20.1K because that’s the second most important… I would like it to hold here and see additional confirmation from LTF. Support is available at $19.3-19.5K if it fails.
Zooming out, other sources still believe in the possibility of an attack on resistance higher up.
Material Indicators are an on-chain analytics resource that can be used to analyze the market. This could mean challenging the 200-week moving median, a key bear-market support level that had been functioning as resistance since June.
Trend Precognition flashes a strong Long signal on #BTC Weekly chart. The signal won’t print before the W candle closes but it indicates that there could be a run at 200 WMA this week. I’m happy to test the lows. Sub $17.5k is for me. #NFA pic.twitter.com/hvs1as44qG
— Material Indicators (@MI_Algos) June 28, 2022
Stocks continue downhill
Commentators focused on macro and argued that crypto risk assets would continue to be affected for longer periods of time because there is no certainty about economic strength.
Related: 3 charts that show the Bitcoin price decline is not like summer 2021
This was in response to a prediction by Michael J. Burry, a Big Short investor, that the U.S. Federal Reserve would end its inflation-busting quantitative tightening policy (QT), in 2022 and instead return to more accommodative circumstances.
“Deflationary pulses in this- -> disinflation of CPI later in the year –> Fed reverses its rates and QT–> Cycles,” reads a tweet published June 27.
TXMC Trades, a popular Twitter account, stated that only a clear boon would cut Bitcoin and other risk assets some slack. This perspective is similar to the views of many commentators, including Arthur Hayes, former CEO of BitMEX.
Despite all the hopes of decouploors #Bitcoin will not grow in a sustained manner unless the economy shows significant improvement. They are undoubtedly linked. The near-term path is not attractive, as regional data are trending toward contraction. https://t.co/qpuPsYm07P pic.twitter.com/WT3TjKHiKD
— TXMC (@TXMCtrades) June 28, 2022com. You should do your research before making any investment or trading decision.