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.
The crypto market will experience a significant milestone over the coming week as Ethereum moves to Proof-of-Stake consensus. See our analysis on how this could impact the price of Ethereum, and what you can expect from the crypto market.
Bitcoin’s price is currently at $18,900. This represents a 5% and seven-day loss respectively. 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. The crypto was trading in a narrow range, flirting at levels above $20,000 but bears eventually won and the market moved downward.
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 frames.
The consolidation continues as the bulls are able to protect Bitcoin’s current price levels. However, Bitcoin is still in a crucial area. Bennett saidThe following information is about how the BTC price should be reclaimed to avoid 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.
The cryptocurrency has reclaimed some ground so far, but the bulls need to push it to $19,000 daily on a close basis to avoid this support area becoming resistance.
BTC may bounce, but inflation might take another hit.
Within the next few days the U.S. is expected to release its August Consumer Price Index print (CPI) – a measurement that helps measure inflation in dollar terms. 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.