Bitcoin (BTC) halted losses while U.S. stocks fell on June 22 as the Federal Reserve remained silent on monetary policy.
Powell is silent on Fed moves
Data from Cryptooshala Markets Pro and trade view showed BTC/USD hovering around $20,500 at the Wall Street open on June 22nd.
The pair fell below the $20,000 mark overnight before recovering, still below the previous day’s high of $21,700.
Markets braced for last-minute surprises following Fed Chairman Jerome Powell’s speech to Congress on the same day, which ultimately doesn’t provide a fresh look at the central bank’s actions. an approach curb rampant inflation.
“We expect the current rate hike to be appropriate; the pace of these changes will continue to depend on incoming data and the changing outlook for the economy,” a copy of the Powell report. testimony released before it appeared to read.
“We will make decisions from meeting to meeting and will continue to state our thoughts as clearly as possible.”
Both the S&P 500 and the Nasdaq Composite index opened slightly lower after rapidly rising a day earlier, providing similar unchanged conditions for the cryptocurrency markets.
As reported by Cryptooshala, the consensus among analysts, however, still points to further retests of lower levels, with $16,000 being particularly popular in the case of Bitcoin.
“Declining volume with completed impulse wave. Been looking for an ABC pullback for too long. I opened a long position, but I closed it due to the completion of the structure here,” popular Twitter account Crypto Tony. explained about setting up an overnight market.
His concerns about low volume in an upward momentum move were echoed by fellow trader and analyst at Rekt Capital, who urged his Twitter followers not to believe too much in the power of the rally.
“The volume of this recent BTC bounce is very low and is dominated by sellers,” he said. wrote.
“This is not the volume that BTC is experiencing at the bottom of a bear market.”
Report finds silver linings in crypto cloud
Looking on the bright side, meanwhile trading firm QCP Capital reported that it saw a decline in bearish conditions after Bitcoin bounced back $20,000 over the weekend.
Bitcoin Miners Sold Their Entire May Harvest: Report
“Saturday, support levels broke and BTC crashed to 17,567 and ETH to 879. For BTC, this is a 75% drawdown compared to all-time highs (82% for ETH). The cryptocurrency crisis is in full swing, ”the message says. its latest market circular released to Telegram channel subscribers.
“However, we were pleasantly surprised by the strong bounce off the lows on Sunday and this week, bringing BTC back above 20,000 and ETH back above 1,100.”
He went on to explain that funding rates in the derivatives markets are now more stable, and the selling pressure on the weekend lows was due to “more miners cutting inventories.”
As for the macroeconomic situation, QCP noted the fall in oil prices as a positive move against inflationary pressures.
“With that said, we remain alert. Buybacks of funds at the end of the quarter are likely to put some pressure on prices along with the possibility of finding new cases of cryptocurrency insolvency,” he added.
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Credit : cointelegraph.com