Bitcoin (BTC) held onto $20,000 for another day on June 23, and calls for another 20% drop are still on.

Hourly candlestick chart BTC/USD (Bitstamp). Source: Trading View

Bitcoin below $10,000 is impossible

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Data from Cryptooshala Markets Pro and trade view showed BTC/USD hovering just above the $20,000 mark in the 24 hours prior to time of writing.

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As always, this behavior reflected the movements in the US stock markets, which remained unchanged during the day.

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The remarks by Federal Reserve Chairman Jerome Powell caused only short-term volatility. Cryptooshala noted that Powell’s testimony to Congress does not contain new information about macropolitics.

As such, crypto commentators stuck with previous claims – the outlook was uncertain, they said, but the potential new drawdown could only include a trip to $16,000.

“BTC consolidation in a wide range and then growth. The MDD (Maximum Drawdown) is not as big as -20%,” said Ki Yong Joo, CEO of network analytics platform CryptoQuant. wrote part of the twitter post.

Key retweeted an analysis of Crypto’s popular Il Capo account, whose BTC earnings have long called for price cuts.

In a separate post by Key. argued that “most bitcoin cyclical indicators say that the bottom” has already arrived, and therefore it was reckless to sell BTC at current levels.

“Not sure how long it will take to consolidate in this range. Going big short here doesn’t sound like a good idea unless you think $BTC is going to zero,” he wrote.

However, there were reasons to avoid risk for monitoring resource material indicators.

“At this stage, no one can say with certainty whether BTC will hold in this range or if it will fall back to the price level below $10k, but it would be foolish not to have a plan for such a possibility,” the tweet reads. argued.

“Never gets old in cryptography. Plan accordingly.”

Fed not planning ‘de-COVID’ balance sheet

In the latest macroeconomic news, mounting pressure on the eurozone was reflected in higher natural gas prices amid a projected supply cut.

Bitcoin Hodler Data Hints BTC Price ‘Really Close’ To Low – Analysts

Meanwhile, in the United States, Powell made fresh comments on the Fed’s policy of monetary tightening.

Shrinking the central bank’s balance sheet said in comments reported According to media reports at the time of writing, the plan is now only to cut to $3 trillion from about $9 trillion worth of asset purchases.

Since February 2020, the Fed’s balance sheet has increased by $4.8 trillion, meaning that even after the cuts, it will be higher than before the pandemic.

Graph of the balance sheet of the Federal Reserve System (screenshot). Source: Federal Reserve.

The balance sheet of the European Central Bank, meanwhile, hit new all-time highs this week despite runaway inflation.

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