Bitcoin (BTC) analysts are keen to set new price targets on Aug. 27 after the largest cryptocurrency briefly dipped below $20,000.
BTC price target below $20,000 remains unchanged
Data from Cointelegraph Markets Pro and TradingView shows second after hawks Overnight, BTC/USD hit $19,945 on Bitstamp following the comments of the US Federal Reserve.
The pair’s intraday loss of nearly 9% as U.S. stocks tumbled on the prospect of inflation policy appears to be increasingly abandoning talk of a “soft landing.”
“Returning to price stability will take some time and will require the robust use of our tools to bring demand and supply into better balance. Lower inflation will likely require a sustained period of below-trend growth, “Fed Chair Jerome Powell at the annual Jackson Hole Economic Symposium.
“Furthermore, labor market conditions are likely to see some softening. While higher interest rates, slower growth and a weaker labor force Market conditions will lower inflation, and they will also cause some pain for households and businesses. Those are the unfortunate costs of lower inflation. But failure to restore price stability will mean more pain.”
Combined with the fact that the quantitative tightening known as QT is likely to continue for “a period of time”, Powell has sparked a sharp drop in volatility in risk assets.
Just wasted 10 minutes of my life watching Powell Saying a bunch of nothing
— Will Clement (@WClementeIII) August 26, 2022
As As Cointelegraph reported, the U.S. stock market lost a total of $1.25 trillion in a single session — more than the entire cryptocurrency market cap.
Bitcoin managed to recover to $20,000 on the day, hovering around $20,200 at the time of writing, but closer to a one-month low.
For traders, it’s now a matter of easing the rally – which could lead to bigger losses.
“$BTC is lower than expected, but the idea is still the same. First liquidation of late shorts, then down,” the cryptocurrency’s popular Twitter account Il Capo said in several updates of the day Be the first to tell followers.
Moving on, Il Capo of Crypto paints a short-term relief target between $23,000 and $23,500, but on the downside, there are now $19,000 and $16,000.
$BTC Main View
Resistance levels: 22500 and 23000. A rally to one of these levels is expected for a bear squeeze. It would also trap the bulls again as this would be an aggressive move.
Support: $19k. A break below this and a direct drop to a new low.
Main goal: $16k pic.twitter.com/wFbVvBmHYO
— il Capo Of Crypto (@CryptoCapo_) August 27, 2022
Others see potential for BTC accumulation if $20,000 is broken again as support may increase.
Colleagues at TraderSZ see $19,400 as a potential rebound area such a correction, relief runs to weekly o $23,000 before a re-emergence of $17,600 in June.
Meanwhile, the key trend line from the previous bull run is now back on the BTC/USD overhead. These include the $21,600 realization and the 200-week moving average (MA) near $23,000.
“Moving higher resistance at $21,100. Support at $19,850, then $19,200,” trading suite Decentrader added as part of the current scenario summary.
DXY wakes up at the last minute of the Fed prompt
with this Meanwhile, the familiar face of the U.S. dollar has once again plagued crypto markets as the stock market tumbled.
Related: CME Bitcoin Futures in ” Record Discounts in “Very Pessimistic Sentiment”
The U.S. dollar index (DXY) initially fell sharply before bouncing back into a volatile range of 20-year highs.
On August 26, the DXY rose slightly from an intra-hour low of 107.6 Below the level of 108.9.
“The Fed’s persistence means $DXY maintains its trend, which means the asset is trending further down,” concluded analyst Kevin Svenson.
Investor and entrepreneur Danny Baldus-Strauss also pointed out that Twitter followers pointed to the negative correlation between DXY and BTC as a persistent top and bottom indicator.
“If you’re accumulating Bitcoin in this bear market, keep an eye on $DXY. All major bottoms in $BTC are in line with local tops in $DXY,” he noted alongside the chart from Trading platform Stockmoney Lizards.
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