Bitcoin (BTC) regained lost ground when Wall Street opened on July 28 amid confusion over the US entering a new recession.
Analysts predicted a US recession based on GDP
Data from Cointelegraph Markets Pro and TradingView tracked the BTC/USD pair as it tested the $23,000 support after a rally following the Federal Reserve’s rate hike the previous day.
the momentum benefited from US GDP data, which fell for the second quarter in a row, which met the demands of the recession in the economy.
US economy in technical recession with GDP shrinking for second quarter. Q2 GDP fell at an annual rate of 0.9% as inventories, residential investment detracted from growth after a 1.6% decline in the first three months of the year. pic.twitter.com/5cXb6uNyWT
— Holger Zschaepitz (@Schuldensuehner) July 28, 2022
The US economy is in a technical recession, with GDP declining for the second quarter. Second-quarter GDP fell at an annual rate of 0.9%, as inventories and residential investment weighed on growth after falling 1.6% in the first three months of the year. pic.twitter.com/5cXb6uNyWT — Holger Zschaepitz (@Schuldensuehner) July 28, 2022.
The situation was unclear, however, thanks to comments from Fed Chairman Jerome Powell and the White House, who both insisted that no recession had come or even expected.
Cointelegraph contributor Michaël van de Poppe has abstract The strange status quo of the day in these terms: “Although Powell said the United States is not in recession, GDP figures have given two consecutive quarters of negative growth, which means the United States is in recession!
US stocks opened flat, and bitcoin did not stay on its full trajectory after hitting $23,450 overnight.
Van de Poppe added that regardless of the state of the economy, BTC traders should not only act on the latest news.
“Now that we know the US is in recession, does that mean we have to adjust our trade strategies? No! The term ‘recession’ doesn’t represent ‘any variable you can work with,’ another Twitter post read.
Meanwhile, the trader and analyst Gareth Soloway predicted tougher times for risk asset investors, as a deeper recession was inevitable due to Fed rate hikes.
#GDP comes out -0.9%. Markets sell first, then rally as investors love the fall #Dollars and the probability that the #Federal Reserve they can no longer raise rates aggressively. So risk on for now until the market realizes that the Fed can’t print us out of a bad recession. #Bitcoin
— Gareth Soloway (@GarethSoloway) July 28, 2022
The #GDP stands at -0.9%. Markets sell first, then rally as investors appreciate the lower #Dollar and the likelihood that the #FederalReserve can no longer raise rates aggressively. So we have to risk it for now, until the market realizes that the Fed can’t get us out of a bad recession. #Bitcoin — Gareth Soloway (@GarethSoloway) July 28, 2022.
His view was echoed by Content Indicators, a chain analysis resource, which also warned that “at a macro level, the worst is yet to come.”
Anyone who thought the GDP numbers were going well, or believed that the @White House it is tempting to release a new definition of recession days before GDP occurs. There are signs of recession i. Near term, the BMR continues. At the macro level, the worst is yet to come. pic.twitter.com/rv3M2bNZAf
— Content Indicators (@MI_Algos) July 28, 2022
Anyone who thought the GDP numbers were good, or believes the @WhiteHouse releasing a new definition of recession days before GDP is a coincidence, is delusional. There are signs of a recession. In the short term, the BMR continues. At the macro level, the worst is yet to come. pic.twitter.com/rv3M2bNZAf — Content Indicators (@MI_Algos) July 28, 2022.
“This meets the technical definition of a recession for the United States with two consecutive quarters of negative GDP growth,” continues the popular Blockchain Backer analytical account.
“This is a pre-print, and will be revised twice. But, as of today, the United States is technically in recession.
A long-term target for Ethereum appears to be above $4,000
As the general mood translates into cryptocurrency pricing, long potential opportunities have emerged for bitcoin and ether (ETH).
Also Read: Bitcoin Bear Market Recovery Continues After BTC Price Hits $23.4 Billion
As for Crypto Chase, a BTC/USD extension was already possible at $22,300, although this is below key moving averages (MAs) such as the 200-week trend at $22,800.
“I wouldn’t be surprised if we do some quick work on this price vacuum in the next few days,” he said. declared his followers
“I’ll look for a take above local liquidity to target $4080 ~ This correlates with BTC pushing to 23,200-23,500 (potential long op at 22,300~ if the market gives). Lots to look out for.”
ETH/USD peaked at $1,676 on the day, remaining above the old all-time low of $1,530 from 2018 since the rate hike was announced.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Cointelegraph.com. All investment and business transactions involve risk. You should do your own research before making a decision.