Bitcoin (BTC) avoided losses from the fall in US equities at the opening of Wall Street on July 14, but traders remained restless.
Analyst: Bitcoin is ‘impossible’ to base at $17,500
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it hovered around $20,000.
Wall Street opened with losses, with the S&P 500 and Nasdaq Composite Index both down about 1.8% at the time of writing.
However, Bitcoin managed to hold its own, as the correlation between the largest cryptocurrency and stocks fell to 2022 low.
That said, few were willing to say that the worst was over for the hodlers.
“It’s a weak rebound so far. The reduction can continue…”, yes abstract macro analyst Aksel Kibar to his Twitter followers.
Popular social media analyst Michael Suppo looking forward to meanwhile at a lower low than in June, close to $17,500, thanks to a combination of macroeconomic factors.
“There is no way $17,500 is the floor for bitcoin,” he bet.
Others had hoped for higher support levels to hold ahead of any further testing of existing multi-month lows.
13.7K is a possibility that we have been looking at for 10 months now. #Bitcoin it won’t hit 13.7K unless we lose 19.5K as support.
19.5K is coming very well so far. The bottom will probably be in or very close to it but most will miss the bottom as they wait for lower prices pic.twitter.com/AJF5ye0ntn
— Steve Courtney ~ Crypto Crew University (@CryptoCrewU) July 12, 2022
Chances are we’ve been looking for the 13,700 for 10 months now. #Bitcoin won’t reach 13,700 unless we lose support at 19,500. 19,500 is doing very well so far. The bottom is probably in or very close to it, but most bottom misses will be waiting for lower prices pic.twitter.com/AJF5ye0ntn. — Steve Courtney ~ Crypto Crew University (@CryptoCrewU) July 12, 2022.
“BTC is through most of its downward acceleration phase,” fellow trader and analyst Rekt Capital continued with a slightly more positive outlook.
“Once this phase is complete, the multi-month consolidation phase will follow.”
The US dollar declines after a new high
The macro event of the day was the US dollar, which hit new 20-year highs against a basket of trading partner currencies.
Also read: How Bitcoin’s Strong Correlation with Stocks Could Trigger a Fall to $8,000
Among these are the euro and the Japanese yen, both of which have reached levels since the turn of the century against the dollar. EUR/USD fell below parity.
The dollar continues to strengthen, with DXY now at its highest level since 2002. This is a euro story, with recession fears growing on the heels of a possible gas cut, and a yen story, and a sharp divergence in monetary policy of Japan. But it is also the stuff-a-mattress trade pic.twitter.com/tfk9GvTqOM
— Lisa Abramowicz (@lisaabramowicz1) July 12, 2022
The dollar continues to strengthen, with the DXY hitting its highest level since 2002. It’s a euro story, with recession fears growing after a possible gas cut, and a yen story, and a wide variety of monetary policy of Japan. But it is also full of things related to trade. pic.twitter.com/tfk9GvTqOM — Lisa Abramowicz (@lisaabramowicz1) July 12, 2022
At the time of writing, the US Dollar Index (DXY) is hovering around 108.9 after peaking at 109.29.
“Nobody wants fire insurance during a flood, and nobody wants insurance on the value of the dollar and the Fed pumping the DXY through rate hikes and recessions,” he said. said Reddit and Twitter user TheHappyHawaiian in a post discussing the impact of a strong dollar on currency prices.
As Cointelegraph reported, TheHappyHawaiian also said the Federal Reserve will soon have no choice but to reverse rate hikes or risk “blowing up” the economy.
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