Bitcoin Is On The Verge Of Reaching Its Lowest Weekly Close Since 2020 As Markets Get More Concerned About Inflation

June

12

By Awi Khan // in Bitcoin

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On the weekly chart, BTC must regain the $29,500 area to prevent resuming its pattern of lower lows.

Bitcoin (BTC) fell to two-week lows on June 11 as bears seized command of Wall Street trade for the week.

U.S. Inflation Print Proves Setback

BTC/USD touched $28,528 on Bitstamp, its lowest since May 28, per statistics  TradingView.

On June 10, the pair dropped in lockstep with financial markets, which finished the week significantly lower – the S and P 500 and Nasdaq Composite both fell 2.9 % and 3.5%, respectively.

This happened on the heels of shockingly strong inflation figures from the United States, which defied forecasts and took a turn for the worse. Annual inflation hit 8.6 %, the highest level since December 1981.

When it related to anticipated BTC price action, market experts were firmly on the cautious side.

“When Bitcoin declines to $22,000 – $24,000, they will seek lower prices.” “When the moment comes, don’t be too hungry,” Crypto Tony, a famous Twitter account, advised followers.

Meanwhile, Filbfilb, co-founder of trading platform Decentrader, linked the present circumstances to the COVID-19 meltdown in March 2020. He stated that this year’s steady bleed was even more terrible than the “car crash” price falls of the previous year, which quickly pushed Bitcoin to $3,600.

“Inflation hasn’t risen, and neither has Bitcoin,” said MicroStrategy CEO Michael Saylor after the report was released.

“It doesn’t matter how many charts indicate convergence that we are approaching historically oversold levels in the current macro background,” popular Twitter account PlanC responded.

“As long as Bitcoin remains correlated to risk on assets I don’t see a significant trend reversal anytime soon.”

Meanwhile, if BTC/USD finishes the week at current prices or any lower than $29,450, it will have achieved its lowest weekly close since December 2020.

Doubts Over Rate Hikes Emerge

The main concentration of the following week was supposed to be on upcoming choices on rate hikes in response to inflation.

The minutes of the Federal Reserve’s Federal Open Markets Committee (FOMC), which are due on June 14-15, may demonstrate how aggressive policymakers intend to be in containing price hikes.

“I assume that at some point, the market will discover that inflation is not going away anytime soon and that rates will remain relatively low,” Daan Crypto Trades, a Twitter account, claimed.

It went on to say that gold, by rising from its present trading channel, could give an early sign of the “new old” trend.

“$GOLD could be a key driver of such a change. I’m keeping a close eye on that. “Right now, we’re still baking in the unfavourable variables,” said one of the day’s posts.

 

About the author, Awi Khan

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