March 24, 2023

Bitcoin (BTC) analysts are keen to set new price targets on Aug. 27 after the largest cryptocurrency briefly dipped below $20,000.

BTC/USD 1 hour candle chart (Bitstamp). Source: TradingView

BTC price target below $20,000 remains unchanged

From Cointelegraph Markets Pro and Transaction view Bitcoin/USD hit $19,945 on Bitstamp the night after the hawkish comments from the U.S. Federal Reserve.

The pair’s intraday losses were close to 9% as U.S. stocks tumbled on the prospect of inflation policy, which appeared to increasingly abandon talk of a “soft landing.”

“Returning to price stability will take some time and will require the robust use of our tools to bring demand and supply into better balance. Lower inflation will likely require a sustained period of below-trend growth,” Fed Chairman Jerome Powell said in a statement. stated in a report. speech at the annual Jackson Hole Economic Symposium.

“Furthermore, there is likely to be some softness in labor market conditions. While higher interest rates, slower growth and weaker labor market conditions will reduce inflation, they will also cause some pain for households and businesses. Regrettably costs lower inflation. But failure to restore price stability will mean more pain.

Adding that the quantitative tightening, known as QT, is likely to continue “for some time,” Powell has triggered a massive spike in volatility across risk assets.

As Cointelegraph reported, the U.S. stock market lost a total of $1.25 trillion in a single session — more than the entire cryptocurrency market cap.

Bitcoin managed to recover to $20,000 on the day, hovering around $20,200 at the time of writing, but still near a one-month low.

For traders, it’s now a matter of easing the rally that could be followed by more severe losses.

“$BTC is lower than expected, but the idea is still the same. Liquidate late shorts first, then drop,” popular Twitter account Il Capo of Crypto Tell Followers are the first of several updates of the day.

Moving on, Crypto’s Il Capo is targeting short-term relief between $23,000 and $23,500, but on the downside, there are now $19,000 and $16,000.

Others look at potential Increase BTC accumulates if $20,000 is broken again as support.

Member Account TraderSZ considered Under such a correction, the potential rebound area is $19,400, with a weekly open near $23,000 before June’s $17,600 re-enters the picture.

Meanwhile, a key trend line from the previous bull run is now back on the BTC/USD overhead. These include the $21,600 realization and the 200-week moving average (MA) near $23,000.

“Moving higher resistance at $21,100. Support at $19,850, then $19,200,” trading suite Decentrader Add to as part of the current situation summary.

DXY wakes up at last minute Fed hint

Meanwhile, the familiar face of the U.S. dollar has returned to the crypto market as stocks tumbled.

Related: CME Bitcoin futures at record discount amid ‘very bearish sentiment’

The U.S. dollar index (DXY) initially fell sharply before bouncing back into a stunning range of 20-year highs.

At the close of Aug. 26, the DXY stood just below 108.9, rising from a low of 107.6 within a few hours.

US Dollar Index (DXY) 1 hour candle. Source: TradingView

Analyst Kevin Svenson said: “The Fed’s sticking to the bottom means the dollar DXY is holding its trend, which means the asset is trending further down.” Summarize.

Investor and entrepreneur Danny Baldus-Strauss meanwhile pointed to Twitter followers’ inverse correlation between DXY and BTC as a persistent top and bottom indicator.

“If you’re accumulating Bitcoin in this bear market, keep an eye on $DXY. All major bottoms in $BTC are in line with local tops in $DXY,” he said famous And a chart from the trading platform Stockmoney Lizards.

USD Index (DXY) versus BTC/USD annotated chart.Source: Danny Baldus-Strauss/Twitter

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Every investment and trading move involves risk and you should do your own research when making a decision.