Monday 15 August 2022
Home / Altcoin Watch / Bitcoin risks new lows as $20K looms amid dollar euro parity

Bitcoin risks new lows as $20K looms amid dollar euro parity

Bitcoin (BTC) headed for $20,000 after the July 11 Wall Street open amid fresh warnings to “prepare for new lows.”

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

$20,300 eyed as next support zone to hold

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD failing to recover losses that had immediately followed the weekly close at $20,850.

The pair had nonetheless locked in its best week’s gains since March, these nonetheless apt to unravel as market uncertainty lingered.

For on-chain analytics resource Material Indicators, the level to watch was a trendline acting as support since June.

“BTC fell back below the 21-ay Moving Average after the Sunday close,” it wrote in a summation-like Twitter post alongside a heatmap of buy and sell interest on major exchange Binance.

“FireCharts shows some bid liquidity in close range, but it may not be enough. If price falls below the trend line, prepare for new lows.”

BTC/USD order book data (Binance) with trend line. Source: Material Indicators/ Twitter

Others predictably focused on the July 13 United States Consumer Price Index (CPI) data release, this tipped to spark downside across risk assets should June’s inflation significantly outpace estimates.

Blockware analyst Joe Burnett additionally highlighted the potential for miners, already facing tight margins, to capitulate more heavily should BTC price action beat its prior lows.

"Crucial support now around $20.3K. Has to hold and, if the markets does, new highs pos," Cointelegraph contributor Michaël van de Poppe nonetheless countered.

Hayes sees start of fiat "doom loop"

Macro takes were hardly any more optimistic. For Arthur Hayes, former CEO of derivatives trading platform BitMEX, confirmation was in that at least the U.S. dollar and the euro were beginning a “doom loop” to oblivion thanks to hitting parity.

Related: US inflation data will be ‘messy’ — 5 things to know in Bitcoin this week

Central banks would now have no option but to adopt yield curve control (YCC), sparking the disintegration of the currency which could ultimately leave Bitcoin on top as the new global standard — a prediction previously laid out in a blog post in April.

“$1 = 1€. Foreign currencies crashing against the dollar. And US dollar losing purchasing power fast (CPI est. 8.8%),” PlanB, creator of the Stock-to-Flow Bitcoin price models, added.

“When money dies .. again.”

The U.S. dollar index (DXY) continued its unrelenting surge higher on the day as the European gas crisis pressured the euro, hitting nearly 108.2 — a new twenty-year high.

U.S. dollar Index (DXY) 1-month candle 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 conduct your own research when making a decision.

About Sean Patterson

Check Also

How High Can Ethereum Go Before The Merge

The Ethereum “Merge” has become a hot topic among top crypto analysts after the incident that led to the collapse of the Ethereum network in the sale of Otherside by Yuga labs, with nearly $200M lost as gas fees. Related Reading: Proof of Work Vs Proof of Stake – Laneaxis The Ethereum merge, also known as Ethereum 2.0, is the upgrade of the existing execution of the Ethereum layer 1 from proof-of-work (PoW) to proof-of-state (PoS), Beacon chain. 5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now! POW was first used by the early pioneers of the blockchain Bitcoin and Ethereum. It aims to achieve decentralization and security by using miners to decode cryptographic algorithms or puzzle-like maths. As the demand increases for transactions, it becomes slow, gas fees increases, and resources intensify. Proof-of-Stake (POS) is similar to POW, just that users authenticate transactions on the blockchain employing stake and get re..

Leave a Reply

Your email address will not be published. Required fields are marked *