Bitcoin prices are trying to rebound on short-term time frames as the cryptocurrency struggled to rise above $19,000. This will prevent any further decline. Over the past 24 hours, selling pressure has been constant and has driven market sentiment back to the fear zone.
In the following week, Ethereum will complete its transformation to a Proof-of-Stake(PoS), consensus. Our analysis of how the possible impact of Ethereum’s price on the market and the implications for crypto markets is available.
Bitcoin’s price is currently at $18,900. This represents a 5% and 7-day loss, respectively, as of the time of writing. Although the market has retained some gains in the previous weeks, there is a possibility that the bullish momentum in Ethereum and Cardano (ADA) may be waning.
This is Why Bitcoin Prices Must Return to These Levels
According to crypto analyst Justin Bennett, Bitcoin price was able to hold about a critical support zone as yesterday’s selling pressure intensified. Although the cryptocurrency moved in tight areas and was flirting with $20,000 levels, bears prevailed which led to downward price action.
As seen below, Bitcoin has been bouncing from yesterday’s low at around $18,600 since June 2022. That time, the cryptocurrency market was experiencing a sharp decline. It was also on course for consolidation in long time periods.
The consolidation continues as the bulls are able to protect Bitcoin’s current price levels. However, Bitcoin is still in a crucial area. Bennett saidBelow are the details about what the BTC Price must recover to stop further losses
The chart for #Bitcoin is quite simple. Support is found in the $19k area. If we close below $19k, then it is likely that we will see at most $17.600 per day. BTC bulls must reclaim $197,000 to reach $20,500, and possibly $21,400. I still don’t think the bottom is in.
Although the cryptocurrency is gaining some ground, bulls should push the price up to around $19,000 per day. Otherwise this resistance zone could become a support zone.
BTC may bounce, but inflation might take another hit.
The U.S. will soon release the August Consumer Price Index (CPI), a measure that measures inflation in dollars. Inflation could slow down as a result of the July CPI printing. The Federal Reserve (Fed), however, may be able to ease its monetary policies with the forthcoming results.
Bloomberg Intelligence Mike McGlone believes that the fall in Crude Oil prices, which is an essential item for measuring CPI, may lead to Bitcoin’s price rise. In the long run, the expert believes today’s macroeconomic outlook will lead the world to “enter a deflationary recession”.
This might cause major changes in the legacy financial system, cementing Bitcoin’s role as one of the world’s most important stores of value along with gold and U.S. bonds. McGlone said:
As a result of falling commodities and global GDP, this scenario has gained traction since September 1.