With the cryptocurrency market likely to see a pick-up in volatility, Bitcoin continues to be bearish. It has not tested its June lows and has outperformed Nasdaq and the S&P 500 in the short term.
Bitcoin could witness a strong recovery with the right push but macroeconomics continues to be at play. A 2.19% dip has the popular cryptocurrency trading at $19,048, as per data on CoinMarketCap. Ethereum plunged 3.53% in the last 24 hours and is changing hands at $1,278. Over the past four days, Bitcoin has been steady between $19,000 and $19,500. The Consumer Price Index (CPI), set to come out on Thursday, is expected to show a slight decrease from September’s 8.3 reading. But this will not be enough to move the current U.S central bank’s monetary hawkishness and ease fears of a harsh recession.
Octavio Marenzi, CEO and founder of Opimas, believes inflation will remain high. He said this will prompt the U.S. Fed to carry on increasing interest rates which is going to weigh down crypto markets. Marenzi doesn’t expect Thursday to bring much good news for crypto markets.
Meanwhile, the rainbow chart shows Bitcoin in the blue zone. It’s at the bottom of the rainbow and has reached the bottom. The blue zone is considered the point where the fire goes out, but market expectations are not yet in the direction of the bottom price. If Bitcoin follows the long-term ongoing pattern, the much-loved digital asset could reach the Maximum Bubble Zone which is represented by dark red. Bitcoin last reached this blue zone in March 2020.
It should be noted that the fear and greed index is in the extreme fear zone with 28 points – suggesting that confidence hasn’t been established in BTC.