Bitcoin risks new downturns as $ 20,000 threatens dollar parity

by · July 11, 2022

Bitcoin (BTC) went up to $ 20,000 after Wall Street opened on July 11, amid new warnings to “prepare for new downturns.”

BTC / USD 1-hour light chart (bit stamp). Source: TradingView

$ 20,300 eyed as the next support zone to hold

Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD failed to recover losses that immediately followed the weekly close of $ 20,850.

The pair had nevertheless locked themselves in their best weeks’ gains since March, these are still suitable for resolving as market uncertainty persisted.

For chain analysis resource material indicators, the level was to look at a trend line that has served as support since June.

“BTC fell below the 21-ays moving average after the end of Sunday,” it said wrote in a summary-like Twitter post along with a heat map of buying and selling rates on the main stock exchange Binance.

“FireCharts shows some bid liquidity up close, but that may not be enough. If the price falls below the trend line, prepare for new downturns.”

BTC / USD order book data (Binance) with trend line. Source: Material Indicators / Twitter

Others predictably focused on the July 13 data release of the US Consumer Price Index (CPI), this tip to give a downside across risk assets if inflation in June should exceed projections significantly.

Blockware analyst Joe Burnett also highlighted the potential for miners, who are already facing tight margins, to capitulate more strongly should the BTC price action hit its previous lowest levels.

“Crucial support now around $ 20.3,000. Must hold, and if markets do, new peaks,” Cointelegraph contributor Michaël van de Poppe said. countered.

Hayes sees the start of fiat “doom loop”

The macro roofs were hardly more optimistic. For Arthur Hayes, former CEO of the derivatives trading platform BitMEX, the confirmation was that at least the US dollar and the euro began a “judgment loop” into oblivion thanks to hitting parity.

Related: US inflation data will be “messy” – 5 things to know in Bitcoin this week

Central banks would now have no choice but to adopt yield curve control (YCC), which triggered the dissolution of the currency that could eventually leave Bitcoin at the top as the new global standard – a prediction previously posted in a blog post in April.

«$ 1 = 1 €. Foreign currency crashes against the dollar. And US dollars lose purchasing power rapidly (CPI estimated at 8.8%), »PlanB, the creator of Stock-to-Flow Bitcoin pricing models, added.

“When money dies … again.”

The US dollar index (DXY) continued its steady rise higher the day the European gas crisis hit the euro, reaching almost 108.2 – a new twenty-year high.

US Dollar Index (DXY) 1-month chart. Source: TradingView

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