Bitcoin held the $20,000 mark again on June 23 but talk of a possible drop of another 20% still emerged.
Bitcoin was down 0.3% at $21,035.20 at the time of writing. Federal Reserve Chairman Jerome Powell brought only brief turmoil when he testified before Congress, which did not mention new information on overall economic policy.
As a result, cryptocurrency commentators maintain their previous assertion that the outlook for the market remains uncertain, but if there is another wave of declines, the price could dip to $16,000.
Ki Young Ju, CEO of on-chain analytics platform Crypto Quant, tweeted that Bitcoin will consolidate in a wide range. The maximum retracement will not be as large as 20%.
Ki Young Ju retweeted a post from the popular account IlCapoofCrypto, who has long believed that Bitcoin prices will fall further.
In another post, Ki Young Ju said that most Bitcoin sentiment indicators show that the bottom has been reached, so it would not be wise to short Bitcoin at current levels.
Ki Young Ju: Not sure how long it will take to consolidate in this range. Initiating a large short position at this number does not sound like a good idea unless you think the price of Bitcoin will fall to zero.
However, Material Indicators believes there are reasons for more risk aversion in the market. One tweet argues: “At this stage, no one can say for sure whether Bitcoin will hold this range or break below $10,000 again, but it would be foolish not to plan for such a possibility.
“Don’t be so naive when it comes to cryptocurrencies. There has to be a plan for this situation.”
In new macroeconomic news, the euro zone is under increasing pressure as natural gas prices soar due to a reduced supply outlook.
At the same time in the United States, Powell delivered a fresh talk on the Fed’s monetary tightening policy. He said the Fed is shrinking its balance sheet to remove $3 trillion in assets from its nearly $9 trillion acquisitions.
The Fed’s balance sheet has increased by $4.8 trillion since February 2020, which means that even after the Fed implements a reduction in its balance sheet, it is still larger than it was before the pandemic.
On the other hand, the size of the ECB’s balance sheet hit a new high this week despite the recent rise in inflation.
Before the cryptocurrency bottoms out, indirectly entering the market by investing in mining machines can effectively reduce investment risks.
Post time: Aug-25-2022