Bitcoin price threatens lowest weekly close since 2020 as inflation scares markets

Bitcoin ( BTC ) dropped to two-week lows on June 11 as Wall Street trading for the week ended with the bears in control.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

US inflation print proves setback

The data of Cointelegraph Markets Pro and from TradingView followed BTC/USD, hitting $28,528 on Bitstamp, the lowest since May 28.

The pair dropped in line with equity markets on June 10, ending the week noticeably lower – the S&P 500 and Nasdaq Composite lost 2.9% and 3.5%, respectively.

This was due to surprisingly high inflation data from the United States, which worsened in contrast to expectations. As reported by Cointelegraph at 8.6%, annual inflation reached the highest level since December 1981.

Reacting, market commentators were therefore firmly on the bear side when it came to future BTC price action.

“When we drop to $22,000 – $24,000 on Bitcoin, they will ask for less. Don’t be too greedy when the time comes,” said the popular Twitter account Crypto Tony. to the followers.

Filbfilb, co-founder of the Decentrader trading suite, meanwhile, compared the current environment with the March 2020 COVID-19 crash. This year’s slow bleed, he argued, was more painful than the “car crash” price declines of the time that took Bitcoin to $3,600.

“Inflation hasn’t peaked, nor has Bitcoin,” MicroStrategy CEO Michael Saylor said in a statement. most hopeful angle after printing the data.

“In the current macro scenario, no matter how many charts are showing confluence we are reaching historically oversold levels,” countered the popular Twitter account. PlanC .

“As long as Bitcoin remains correlated with asset risk, I don’t see a significant trend reversal anytime soon.”

If it ends the week at the current levels or below $29,450, the BTC/USD pair would be threatening its lowest weekly close since December 2020.

BTC/USD 1-week candlestick chart (Bitstamp). Source: TradingView

Doubts about interest rate hikes arise

Looking ahead, upcoming decisions on rate increases in response to inflation were set to be the main focus of the next week.

Related: BTC price hits its longest losing streak in history – 5 things to know about Bitcoin this week

The minutes of the Federal Reserve’s Federal Open Markets Committee (FOMC), scheduled for the June 14-15 meeting, will provide clues as to how aggressive policymakers plan to be when it comes to containing price increases.

“I think at some point the market will realize that inflation is not going to go away anytime soon and that rates will still be relatively low.” argued the Daan Crypto Trades Twitter account.

He added that gold could provide an early indication of this “new and old” trend, rising from its current trading channel.

“$GOLD may be the main factor in this change. Watching this closely. At the moment, we are still in the process of preparing the bad factors,” read a post on the day.

XAU/USD 1-day candlestick chart. Source: TradingView

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should carry out your own research when making a decision.

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