Bitcoin traded at the US$20,000 mark once more, in line with declining stocks and growing concerns about a global economic recession.
The biggest cryptocurrency fell as high as 4.3% to US$19.947 before it settled in London at 9.23 AM. The maximum drop in Ether was 5% to US$1,066.02. According to CoinGecko pricing, Shiba Inu was the 14th largest cryptocurrency in market value. However, it rallied 14% over the past 24 hours, despite its momentum slowing down.
Mark Newton, Fundstrat Global Advisors’ head of technical strategy, stated that Bitcoin has reached a bottom, but not the bottom. “Upside targets should be near US$23,000. A maximum near US$24,000. Before prices pull back to their previous lows in the last week of June, they will likely challenge them again.
Since the beginning of May, cryptocurrencies have moved in the same direction that stocks. Wednesday’s moves are no exception. Investor appetite for risk assets has risen on rising fears of an economic downturn. Bitcoin seems to be consolidating at the US$20,000 level, similar in nature to its actions around US$30,000 during May and June.
Bitcoin trades at key round-number levels.
Informa Global Markets said Tuesday that the move from sub-US$20,000 lows was due to broader risk sentiment stabilizing and speculative traders awaiting their next trading prompts.
Informa stated that the firm also added that data from Glassnode, an on-chain analytics company, showed that 56.2% addresses had a dollar value that was higher than when they received their coins. This raises questions about the severity and current bear market. This is compared to recent Glassnode data which shows that the average price at which all Bitcoins were purchased was approximately US$23,000. So, it’s higher than current levels.
Informa stated that Bitcoin’s true driver is the larger picture.
The firm stated that macroeconomic conditions must improve before crypto markets can see a bottom.