Crypto

Bitcoin price: BTC struggles to stay afloat amid reverse currency war | Cryptocurrency

  • The crypto analyst who called the May 2021 Bitcoin crash believes BTC is in a buy zone despite the macro outlook.
  • Bitcoin Convergence Moving Average Divergence (MACD) looks bullish for optimal BTC buying.
  • Analysts believe that the price of bitcoin will break out of the downtrend, looking at the $23,550 level.

In the face of an inverted currency war, analysts such as Dave Wave advised traders to hoard bitcoins in their buy zone. Analysts continue to maintain a bullish view on the asset.

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Reverse currency war brewing, best time to buy bitcoin?

As currency wars flare up during turbulent economic times, they have a significant impact on Bitcoin’s price trend. Bitcoin and cryptocurrencies are riskier assets and investors tend to withdraw capital from these investments in the face of economic uncertainty.

In June 2022, “reverse currency wars” became a reality. Goldman Sachs’ foreign exchange team told clients that the Swiss National Bank’s sharp interest rate hike confirmed their bullishness on the franc and proved to be “the strongest evidence” of a reverse currency war. Therefore, a reverse currency war is brewing as a side effect of the central bank’s anti-inflationary measures.

Although investor sentiment has worsened, there remains a strong demand for bitcoin among traders. Ebrahim Rahbari, Citi strategist, believes that excessive tightening around the world is causing deep concern in global markets and that “reverse currency wars are strongly bearish for risky assets.”

Contrary to Rahbari’s opinion, Griffin Ardem, a volatility trader at crypto asset management company Blofin, told CoinDesk:

Even if central banks tighten their monetary policy even further, the situation will not get worse as the current performance of crypto assets is already dire enough.

The analyst who predicted the price of Bitcoin to fall in May 2021 believes that BTC is in a buy zone and now is the right time to buy the asset.

Analyst Claims Bitcoin is in a Buy Zone

Dave Volna, a renowned cryptocurrency educator and analyst, accurately predicted the crash of Bitcoin in May 2021. Dave told his 123,600 Twitter followers that Bitcoin is in an extended sideways range and is in a “buy zone”.

BTC-USD price chart

The analyst notes that the monthly convergence-divergence of bitcoin moving averages (MACD) looks bullish. Dave Wave said:

The monthly MACD worked wonders in predicting the top. [loss of momentum/ blue arrow]. The histogram is now as wide as before… and in the same time range. Bullish [for optimal buying as opposed to buying the top].

Bitcoin price is ready to break out of the downtrend

El Crypto Prof, a pseudonymous cryptanalyst, noted that during the latest FOMC meeting, Bitcoin broke its monthly descending widening wedge pattern. Therefore, the asset is likely to continue its uptrend, a copy of the DBW strategy.

The analyst believes that the price of bitcoin could reach the $23,550 target if the situation repeats.

BTC-USD price chart

BTC-USD price chart

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