Bitcoin recently succeeded in bouncing back from its cycle bottom to around $25,000. However, it once more dropped below the psychological $20,000 threshold following Fed Chairman Jerome Powell’s remarks at the Jackson Hole conference.
While the IMF predicts a lean time of at least one to two years for the market for hazardous assets, some experts are sure that BTC/USD is about to breach below the $10,000 level.
Sam Bankman-Fried, the founder and CEO of the cryptocurrency exchange FTX, is optimistic that the value of cryptocurrencies will soon begin to increase. He said in a Bloomberg interview that he wasn’t at all bothered by bitcoin’s declining price. This fall is just the result of a brief shift in macroeconomic conditions rather than a lack of interest or a failure of the technology.
The fact that the billionaire has committed close to a billion dollars in a variety of cryptocurrency initiatives demonstrates how confident he is in the sector’s development.
He does not currently anticipate the industry to experience a medium- or even long-term difficulty. This would only occur if the Nasdaq dropped by 30–40% and bitcoin plunged below $10,000:
“Some pundits have said that bitcoin has probably bottomed out. Jerome Powell said on August 26 that the Federal Reserve wants to maintain its hawkish strategy and so this price pressure is already priced into the equity market. such negative developments, it can be seen that BTC’s decline has been rather small. In previous recessions, cryptocurrencies have fallen far more than tech stocks (NYSE:XLK). This time around, bitcoin is showing some strength. some resistance, which is a promising sign”.
Will crypto back a comeback?
FTX CEO and co-founder Sam Bankman-Fried thinks so. He says he was not nervous when Bitcoin hit $20,000 earlier this year, before its latest drop after Fed Chair Powell's speech recent speech on inflation https://t.co/VMhvljBi5F pic.twitter.com/lfE9yEO5JC
— Bloomberg Crypto (@crypto) August 31, 2022
The technical standards for the price of bitcoin
As it increased 0.99 percent over the previous day to $20,093, Bitcoin was able to retake the psychological $20,000 level. The decline during the past week decreased to -6.16 percent.
Yesterday saw the cryptocurrency hit its daily low of $19,584, which sparked a recovery that even resulted in a daily closing price beyond the crucial $20,000 mark. The way is now clear for a continuation of the upward movement towards the $20,523 level of the 61.8 percent Fibo retracement.
If bitcoin manages to sustainably overcome this resistance, the move may extend towards the 50 percent Fibo retracement of $21,417.
Only if the support at the 78.6 percent Fibo retracement of $19,251 breaks should we expect a test of the cycle low of $17,630.
