Despite statements from the Fed and Congress, the Q2 GDP reading for the United States satisfies the criteria for a recession.
In the midst of uncertainty over whether the United States has entered a new recession, Bitcoin (BTC) gained more lost territory on the Wall Street opening on July 28.
Analysts Call Recession For United States On GDP Print
Following a leg up following the Federal Reserve’s rate hike the day before, BTC/USD approached $23,000 for support, according to data from Cointelegraph Markets Pro and TradingView.
The momentum gained from U.S. GDP figures, which declined for the second consecutive quarter, fulfilled the criteria for an economic recession.
However, the situation remained uncertain due to statements made by both the White House and Fed head Jerome Powell, who argued that neither a recession had occurred nor was even anticipated.
Powell said that the United States was not in a recession, but the GDP data showed two straight quarters of negative growth, proving otherwise. Michal van de Poppe, a contributor to Cointelegraph, provided a summary of the day’s peculiar situation.
U.S. stocks opened unchanged, and after overnight reaching $23,450, Bitcoin’s overall trend remained unclear.
Van de Poppe noted that Bitcoin traders shouldn’t make decisions only based on the most recent news, regardless of the status of the economy.
“Do we need to modify our trading techniques now that we know the United States is experiencing a recession? No! There is no variable associated with the term “recession” that you can manipulate, “except another tweet that stated.
Gareth Soloway, a trader, and analyst, forecast that risk asset investors would face worse times ahead since a deeper recession was unavoidable due to Fed rate hikes.
With two consecutive quarters of negative GDP growth, this “fits the technical criteria of a recession for the United States,” according to the well-known analytics account Blockchain Backer.
“This is a preliminary print and will be revised two more times. But, today, the U.S. is technically in a recession.”
Ethereum’s Long Target Above $4,000 Appears
When the macro mood was applied to the price of cryptocurrencies, potential extended opportunities for Bitcoin and Ether became apparent (ETH).
Even though it was below critical moving averages (MA), like the 200-week trendline at $22,800, buying BTC/USD was already viable for Crypto Chase at that price of $22,300.
He urged his fans, “I wouldn’t be surprised if we made quick work of this price void in the coming days.
“I’ll be watching for acceptance above local liquidity to target $4080~ This correlates w/ BTC pushing to 23.2-23.5K (potential long opp at 22.3K~ if the market gives). Lots to watch tbh.”
Since the news of the rate hike, the price of ether in US dollars has risen to $1,676, staying above the previous record high set in 2018 of $1,530.