Crypto

Analysis & Opinion: Bitcoin (BTC) price briefly falls below $20,000 after Powell’s “Pile of nothing” speech. – Mag Mirror

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Bitcoin (BTC) analysts were looking to set new price targets on August 27 after the biggest cryptocurrency briefly slipped below $20,000.

BTC price targets below $20,000 remain in place.

Data from Cointelegraph Markets Pro and TradingView shows BTC/USD hit $19,945 on Bitstamp overnight following hawkish comments from the US Federal Reserve. See also: Panic in the crypto market: Cryptocurrency market is collapsing, the Fed is raising interest rates! Is this the start of a market crash?

The pair’s intraday losses hovered around 9%, and US stocks tumbled on the outlook for an inflation policy that seems to be eschewing the soft landing narrative more and more.

“Restoring price stability will take some time and will require active use of our tools to balance supply and demand. Reducing inflation is likely to require an extended period of below-trend gains,” Fed Chairman Jerome Powell said in a speech at the annual economic symposium in Jackson Hole.

Adding that quantitative tightening, known as QT, could continue “for some time,” Powell triggered a significant spike in downside volatility in risky assets.

I just wasted 10 minutes of my life watching Powell say nothing.

As Cointelegraph reported, U.S. stocks lost a total of $1.25 trillion in a single session, more than the entire crypto market capitalization.

Bitcoin managed to make back $20,000 in a day and is hovering around $20,200 at the time of writing, although still close to monthly lows.

For traders, it was now a relief bounce, possibly followed by even bigger losses.

“$BTC fell lower than expected, but the idea remains the same. First up to liquidate late shorts, then down,” the popular Il Capo of Crypto Twitter account told its followers in the first of several updates in a day.

Continuing, Il Capo of Crypto drew short-term aid targets of $23,000 to $23,500, but on the other hand, there are $19,000 and $16,000 in play right now.

Resistances: 22500 and 23000. We expect a bounce to one of these levels for a short squeeze. This will also lead to taking long positions as it will be an aggressive move.

Support: 19 thousand dollars. If we go lower, we are going straight to new lows.

Main goal: $16,000 pic.twitter.com/wFbVvBmHYO

Others have foreseen the possibility of further BTC accumulation if the $20,000 support is breached again.

Another account, TraderSZ, saw $19,400 as a potential bounce zone in such a correction, with relief before the week opened near $23,000 before June’s $17,600 reappears.

Meanwhile, the key trendlines that were presented in previous bull markets are once again above the BTC/USD head. These include a strike price at $21,600 and a 200-week moving average (MA) near $23,000.

“Moving upper resistance at $21,100. Support at $19,850 and then $19,200,” added the Decentrader trading package as part of the current scenario summary.

DXY wakes up at the last minute on Fed signals

As stocks tumbled, the familiar face of the US dollar returned to haunt the cryptocurrency markets. On the same topic: Panic over these 3 cryptocurrencies: Why are Shiba Inu, Ethereum and Dogecoin sinking today?

The US dollar index (DXY), which initially fell sharply, has recovered to levels that bring it back to 20-year highs.

At the end of August 26, the DXY index was just below 108.9, bottoming at 107.6 within a few hours.

“If the Fed stays on course, it means that $DXY is holding its course, which means that assets are more likely to fall,” analyst Kevin Swanson concluded.

Meanwhile, investor and entrepreneur Danny Baldus-Strauss drew the attention of his Twitter followers to the inverse correlation between DXY and BTC as a constant indicator of highs and lows.

“If you are hoarding bitcoin in this bearish phase, keep an eye on $DXY. All major $BTC lows coincided with $DXY local highs,” he noted along with a chart of the Stockmoney Lizards trading platform.

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

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Be vigilant and consult your financial advisor before making any investment decision. Mirror-Mag cannot be held responsible for unsuccessful investments. Before using any third party service, you should do your own research.

Passionate about cryptocurrencies and DeFI, Thomas brings international news on the subject!

Thomas E.
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