Bitcoin analyst price drops below $17,500 after weak BTC price rebound

Bitcoin analyst price drops below $17,500 after weak BTC price rebound

Bitcoin (BTC) avoided losses from the fall in US equities at the opening of Wall Street on July 14, but traders remained restless.

1-hour candlestick chart of the BTC/USD pair (Bitstamp). Source: Trade View

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.

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 — 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 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. — 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.

1 hour candlestick chart of the US Dollar Index (DXY). Source: Trade View

“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.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of All investments and transactions involve risk. You should do your own research before making a decision.

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