Bitcoin price battles $23,000 as data says US in ‘technical recession’
Bitcoin (BTC) regained more lost ground at the July 28 Wall Street open, amid confusion over whether the US had entered another recession.
Analysts call recession for US on GDP print
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it tested $23,000 for support after a move up on the previous day’s rate hike by the Federal Reserve.
Momentum benefited from US GDP data, which fell for the second consecutive quarter, thus meeting the requirements for a recession in the economy.
US economy in technical recession as GDP shrinks for second quarter. Q2 GDP fell at a 0.9% annual rate as inventories, housing investment detract from growth after a 1.6% decline in the first three months of the year. pic.twitter.com/5cXb6uNyWT
— Holger Zschaepitz (@Schuldensuehner) 28 July 2022
However, the situation remained unclear, thanks to comments from both Fed Chairman Jerome Powell and the White House, both of which insisted that no recession had come or even been predicted.
“While Powell stated that the US is not in a recession, GDP figures showed two consecutive quarters of negative growth, which means the US is in a recession!” Cointelegraph Contributor Michaël van de Poppe in summary the curious status quo of the day.
US stocks opened flat, while Bitcoin remained uncertain about its overall trajectory after hitting $23,450 overnight.
Van de Poppe added that regardless of the state of the economy, BTC traders should not trade solely based on the latest news.
“Now we know the US is in a recession, does that mean we should adjust our trading strategies? No! The term recession doesn’t represent a variable you can work with,” apart from a further Twitter post tired.
Meanwhile, trader and analyst Gareth Soloway predicted tougher times ahead for risk-asset investors, as a deeper recession was inevitable thanks to Fed rate hikes.
#GDP comes out -0.9%. Markets sell off first, then rally as investors love the fall #Dollars and the probability that #FederalReserve can no longer raise interest rates aggressively. So risk on for now UNTIL the market realizes the Fed can’t write us out of a bad recession. #Bitcoin
— Gareth Soloway (@GarethSoloway) 28 July 2022
His perspective was echoed by chain analysis resource Material Indicators, which also warned that “at a macro level, the worst is yet to come.”
Anyone who thought GDP figures were going to be good, or think that @White Houses Releasing a new definition of recession days before GDP was a coincidence is delusional. Signs of a recession are in. In the short term, BMR continues. On a macro level, the worst is yet to come. pic.twitter.com/rv3M2bNZAf
— Material Indicators (@MI_Algos) 28 July 2022
“This meets the technical definition of a recession for the US with two consecutive quarters of negative GDP growth,” popular analyst account Blockchain Backer continued.
“This is a preliminary print, and will be revised two more times. But as of today, the United States is technically in a recession.”
Long Ethereum target above $4,000 appears
Translating the macro sentiment into crypto price, potential long opportunities became apparent for both Bitcoin and Ether (ETH).
Related: Bitcoin ‘bear market rally continues’ after BTC price jumps to $23.4K
For Crypto Chase, yearning BTC/USD was already possible at $22,300, despite this being below key moving averages (MA) such as the 200-week trend line at $22,800.
“I would not be surprised if we did quick work on this award void in the coming days,” he told followers.
“I’ll look for acceptance above local liquidity to target $4080~ This correlates with BTC pushing to 23.2-23.5K (potentially long up 22.3K~ if market yields). Much to see tbh.”
ETH/USD rose to $1,676 on the day, holding above the old record high of $1,530 from 2018 since the rate hike announcement.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade involves risk, you should do your own research when making a decision.
