The first cryptocurrency (Bitcoin) by market capitalization value lost support at a high price of around $30,000 and is currently working hard to stay in the middle zone.
Bitcoin reacted negatively to the statement made by Federal Reserve Chairman Jerome Powell at the FOMC meeting. A major macroeconomic event last week was the rise in the U.S. dollar as investors lowered their inflation expectations in the coming months.
In turn, raw materials such as gold and silver are also affected. In the XAU/USD trading pair, precious metals fell from a high of $1800. Now, it is trading at $1,763, and the XAG/USD trading pair showing similar losses.
However, the bulls still have some hope. As economist Alex Kruger said in his Twitter account, it is well known that Jerome Powell can cause market fluctuations that cancel each other out.
Powell tends to crash the FOMC market and push the market in testimony before Congress. He will testify in Congress on Tuesday.
Jarvis Labs analyst Ben Lilly said she expects the Fed to take action in the next few weeks to inject U.S. dollars into the market. As a result, the U.S. dollar may weaken and give Bitcoin a break.
When the unemployment rate is higher than expected, the US government may not want the dollar to strengthen. This is because cheaper dollars help generate more exports and job growth.
Therefore, if this situation continues, you can almost expect some kind of policy push in the next week or two.
These are the two most commonly asked questions on all cryptocurrency-related platforms, be it social media, or chats. The price movements in May and June have only strengthened the bearish sentiment in the cryptocurrency market.
Josh Rager (Josh Rager) put forward from 2020 “unpopular opinions.” At that time, he stated that the BTC peak in the current cycle may be lower than expected. It is predicted that the price of Bitcoin may rise to 100,000 US dollars or even 1 million US dollars. Rager believes that 78,000 US dollars and 85,000 US dollars are better estimates.
It is difficult to rule out a run like 2013, where prices fell for 8 months straight and finally hit a new all-time high (ATH). But for ROI, loop from bottom to top, reducing each loop. Why is there any difference? People think that $65,000 is not high enough, but history doesn’t think so.
For Goldman Sachs fund manager Raoul Pal on the other hand believes that the dollar can only be strengthened in the short term. Pal said that due to the global economic slowdown, the Covid-19 pandemic and lockdown measures, many people are betting on a weaker U.S. dollar in 2020.
Since the opposite seems to be happening, the foreign exchange market may be affected. In the short term, this may continue to affect the Bitcoin and cryptocurrency markets. Despite this potential play.
This euro chart may be a very large head and shoulders top. Remember: 100% of all currency forecasters on Wall Street predict that the U.S. dollar will weaken in 2021, and their positions will reach record levels of short U.S. dollar positions.
If this situation goes wrong, the new macro system is working. There seem to be too many unknowns and uncertainties in the price of Bitcoin and the entire market.
The middle area is the current level that should be the key support. If the downward trend continues, many people expect it to return to the $20,000 area.
The bulls must push to $40,000, and only time will tell whether they will get a boost from Powell and the Federal Reserve (Fed.)