Bitcoin (BTC) avoided losses as US stocks plunged on July 14 on Wall Street, but traders remained nervous.
BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView
Analyst: Bitcoin ‘No way’ dropped to $17,500
I followed the data from Cointelegraph Markets Pro and TradingView BTC/USD as it remained around $20,000 per day.
Wall Street opened with losses, and both the S&P 500 and the Nasdaq Composite were down about 1.8% at the time of writing.
However, Bitcoin managed to hold it as the correlation of the largest cryptocurrency to stocks fell to its lowest levels in 2022 thus far.
Having said that, few were willing to say the worst was over for spoilers.
“This has been a weak recovery so far. Another potential bearish continuation…” macro analyst Axel Kibar summed up to his Twitter followers.
Meanwhile, famous analyst and social media personality Michael Sobo predicted a drop below June levels near $17,500 thanks to a combination of macroeconomic factors.
He ran: “There is no lowest price for Bitcoin at $17.5K.”
Others hope that higher support levels will hold before any retest of multi-month lows.
“BTC has gone through most of the downtrend acceleration phase,” fellow trader and analyst Rekt Capital continued with a slightly more bullish view.
“Once this phase is completed, the multi-month consolidation phase will follow.”
US dollar cools after another record
Today’s macroeconomic story has been the US dollar, which has continued to reach 20-year highs against a basket of trading partner currencies.
Related: How Bitcoin’s Strong Correlation With Stocks Could Lead to a Drop to $8000
Among them were the euro and the Japanese yen, both of which fell to their lowest level since the beginning of the century against the US dollar. The EUR/USD pair fell below parity.
At the time of writing, the US Dollar Index (DXY) is hovering around 108.9 after peaking at 109.29.
US Dollar Index (DXY) candlestick chart. Source: TradingView
Reddit user and Twitter user TheHappyHawaiian commented in a post discussing the impact of a strong dollar on silver: “Nobody wants fire insurance during floods, nobody wants dollar-value insurance as the Fed pumps DXY into US dollars through price hikes and recession.” the prices.
As Cointelegraph reported, TheHappyHawaiian also mentioned that the Fed will soon have no choice but to reverse higher interest rates or risk “blowing up” the economy.
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