3 Experts Take on Bitcoin Price, Will $19,000 Hold or Break?
Bitcoin price has moved sideways on low timeframes after experiencing a rejection north of $20,000. The number one cryptocurrency by market capitalization is benefiting from Ethereum’s “Merge” bullish momentum, but with this factor gone, the bears appear to be in control again.
At the time of writing, the Bitcoin price is trading at $19,200 with a loss of 14% in the last week and sideways movement in the last 24 hours. The cryptocurrency crashed below a critical support zone around $18,500 over the weekend, giving bearish arguments fresh ammunition to predict a new yearly low.
The Last Line of Defense for the Bitcoin Price?
Bitcoin price has been on a downward trend since late 2021, when it hit a new all-time high of $69,000. In the months that followed, Bitcoin lost over 80% of its value, crashing to a yearly low of $17,600.
The cryptocurrency bounced off these lows and formed a short-term bottom around $18,600. In recent days, BTC’s price has fallen to $18,200, which may indicate that bears have gathered enough momentum to push the price to its annual low and possibly fresh low below $17,000.
In a post-Merge crypto market, macro factors seem to have the most influence in the nascent asset class and traditional financial markets. Bitcoin has shown a high correlation with major stock indices since the start of its bearish price action.
According to analyst Josh Rager, the S&P 500 index “will want lower” and could drag the price of Bitcoin with it. The cryptocurrency is in a critical support zone, as mentioned, and breaking below the current levels could open the door for a fresh leg down. Rage is recommended Traders stay flat on the US dollar as the market decides on a direction:
This is the stock chart, the rejected level above and looks like it wants lower. BTC is holding on to support near $18k-$19k for the fifth time. It’s not looking too good right now, but maybe we’ll get another bounce… I’m flat at the moment and will keep an eye on this.
The US Fed is poised to influence the Bitcoin price
On low timeframes, the market appears to gravitate towards liquidity pools created by traders with leverage, according to Justin Bennett. There was over $1 billion in Bitcoin long bet at around $18,850, which appears to be the main support for the cryptocurrency’s current price action.
Nothing like a cash rush to start the morning.
Almost $1 billion in $BTC longs had built up to $18,850 on Binance alone.
The long ones have been deleted.#Bitcoin pic.twitter.com/puGpyAltiv
— Justin Bennett (@JustinBennettFX) 20 September 2022
This status quo looks set for disruption as the US Federal Reserve (Fed) will hold its Federal Open Market Committee (FOMC) meeting tomorrow. There, the financial institution will reveal its position on current inflation and a potential interest rate increase above 75 basis points (bps).
Economist Alex Krüger is aims by a potential short-term downside price action followed by more sideways moves if the Fed stays within market expectations. If there are surprises, and the financial institution rises above 100 bps, the crypto market may react to the downside.
