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Downside advantage to be expected on Bitcoin price


Key points from the Bitcoin price article:

  • The price of Bitcoin should continue to depend on the general sentiment of traders in the markets
  • BTC/USD could impose support at $20,000 in the medium term

The price of Bitcoin should continue to depend on the general sentiment of traders in the markets

Cryptocurrencies have been consolidating for several days after coming in near their early summer lows. The price of Bitcoin (BTC/USD) stabilized at $20,000 after last week following a 20% correction after being last week at $25,000.

The Bitcoin price outlook is akin to stock market cells, especially tech stocks. Indeed, the Bitcoin circuit has a significant three correlation with the Nasdaq 100 after the start of the year. Bitcoin therefore seems above all to behave like a traditional risky act, moreover a significant beta three, than like a decorated asset for financial assets.

chart Daily price of BTC/USD and Nasdaq realized on TradingView:

Bitcoin Nasdaq Correlation

Given that the global economic outlook is likely to continue to darken with the unprecedented monetary cuts from central banks and the various crises facing Europe (energy) and China (real estate, health and energy), the outlook for Risky assets are lackluster and are likely to continue to darken.

Especially since no news is currently coming to improve the backdrop. The main catalyst that could improve the global economy will be a lifting of the embargo on Russian raw materials, in particular on hydrocarbons, as this could lower the price of energy throughout the world.

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BTC/USD could impose support at $20,000 in the medium term

chart weekly Bitcoin price (BTC/USD) carried out on TradingView:

Downside advantage to be expected on Bitcoin price

Analyze Bitcoin price

According to the blueprint of the analysis technique, Bitcoin consolidated after June 20,000 per second, corresponding to the last Sunday of December 2017 of selling pressure, as in June.

The next major support to watch that Bitcoin could attempt to consolidate, or even bounce off, would be the June 2019 former high at around $14,000. A continuation of the decline below this support is not unlikely if funding costs continue to be suffered and if the economic outlook deteriorates much more than the current forecasts of market participants.

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