After consolidating gains on October 27 as the highest levels in six weeks, Bitcoin looks shaky as it tries to hold onto the crucial $20,000 mark. The popular cryptocurrency has to continue its bullish run and needs to stay in the $20,500 area to continue the upward trend.
At the time of writing this article, Bitcoin was trading at $20,289, down by 2.41% in the last 24 hours. Ethereum held onto $1,508. It lost 3.11% in the last 24 hours. Data shows that crypto markets paused their recent two-day ascent because of an unexpectedly strong GDP report in the United States. But it failed to shake off investors from underlying concerns about inflation and a potential steep recession.
Eric Winograd, director of developed market economic research at AllianceBernstein, believes the GDP number is weaker, in terms of the signal it sends about the forward strength of the economy than the last one was, despite the headline being positive. Michael van de Poppe, founder, and CEO of trading firm Eight, said it will be a big day for the global crypto market as the European Central Bank comes in with its policy and GDP numbers from the U.S. He outlined that Bitcoin remains calm at these levels, but a more significant correction was expected since the last push.
Il Capo of Crypto, a trade analyst, said the $21,500 would need to form the basis for consolidation should the bulls want to see Bitcoin touch $23,000. But he dreads a reversal to new macro lows potentially hitting $14,000.