Bitcoin slid back to $20,000 after a remarkable rise to the $21,800 mark on Friday. As BTC threatens to fall below the crucial $20,000 mark, enthusiasts are hopeful of a swift recovery. The dip was expected given low crypto trading over the weekend.
At the time of writing this article, Bitcoin was trading at $20,588. It lost 1.05% in the last 24 hours. Ethereum was down by 1.15% and changing hands at $1,155. Bitcoin seems to be making the market aware of the impending US consumer inflation data to be released on July 13. Analysts believe it could influence market expectations over the Federal Reserve’s next move.
Moreover, investors are not confident that Bitcoin’s price correction is over given the macro uncertainty. It needs to take up higher lows soon to reinstate investor confidence. Bitcoin’s price analysis shows the daily trendline is still descending. Price action had earlier rejected movement above the trendline in repetitive bearish legs.
Jurrien Timmer, Fidelity Investment’s director of global macro, says the popular cryptocurrency is back at the 2013 bull market levels, that is, if the price per millions of non-zero addresses is considered for valuing it.
Joe DiPasquale, CEO of BitBull Capital, highlighted choppy price action. He believes more strong bidding around the $17 k level is expected if Bitcoin’s price falls there again. It will be a strong signal for the bulls and indicates the formation of a potential bottom around that price. Edward Moya, Oanda Senior Market Analyst, says the September meeting could be fully priced in a half-point rate increase if inflation delivers another upside surprise.