BTC gets rejected at $23k, US dollar declines from fresh 20-year high
Things are not looking good for Bitcoin, with rumours of a Bitcoin bottom circulating
By Shashank Bhardwaj
BTC reached a high of approximately $22,957 on Bitstamp after the Federal Reserve confirmed a 0.75 percent rise in June, the largest rise seen since 1994. The price rise, however, was not long-lasting, and at the time of writing, the BTC/USD pair had lost around $2,000, with the value of the pair reverting to $21,000 at the new Wall Street open. Over the past month, Bitcoin has lost 32 percent of its value.
“BTC really failed to catch the mid range and fell back to the extent it is till now. If BTC doesn’t want to retest the lows and possibly test the lows below $20K, this range is my line in the lower sand. Holding here and we can target the mid range (and higher) again,” tweeted a Twitter account by the name Dan Crypto Trades.
The US dollar Index (DXY) reached twenty-year high again post the announcement but the DXY began retracing after June 16.
Crypto Tony, a well-known trader in the crypto market, eyed the performance of the US dollar in the aftermath of the Fed's decision and noted that a change in USD strength could be significant for a possible Bitcoin bottom.
Tony took to Twitter to talk about the recent events, stating, "Coming up to a big resistance zone on the dollar, which if we can reject from here and dump. The Bitcoin bottom may be in soon." He also said, "However, I am looking for another tap up before the drop, which coincides with another leg down on $BTC, so keep an eye on this."
Another prominent name in the crypto market, veteran trader Peter Brandt who is known to be correct about his Bitcoin bottom calls, predicted that a retest of $20,000 would result in a "relief rally" rather than a meaningful rebound.
Concerns about other international economies are as fresh in the thoughts of many traders in the industry as US markets opened down after recovering from the Fed news.
Following the crash, Bitcoin fell as low as $20k before recovering slightly to its current levels. It's uncertain whether the carnage has halted or if further fall is on the way. But, if things remain the same as the current predictions, things aren't looking good for BTC.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash