Bitcoin price likely to see $9,000 low — market strategist warns ⋆ ZyCrypto
Bitcoin plunged to a three-week low Friday, breaking free from a tight price squeeze that had seen it fluctuate between $22,500 and $22,200 since March 3.
The drop came after US Federal Reserve Chairman Jerome Powell said on Tuesday that while inflation has eased, it is still nowhere near the Fed’s 2% target. Investors have taken his comments to suggest the bank is likely to continue pushing for more aggressive monetary policy than expected.
“Although inflation has been easing in recent months, the process of getting inflation back to 2% has a long way to go and is likely to be bumpy. The latest economic data has come in stronger than expected, suggesting that the final the interest rate level is likely to be higher than previously assumed. Powell told the Senate Banking Committee.
The comments saw the top cryptocurrency by market cap fall just over 12% to hit $19,628 during the Asian session today before recovering to around $19,958 by press time. Ether, the second largest cryptocurrency, also took a hit, although it fell slightly lower by less than 1% to reach $1,540.
BTC risks further fall, says Soloway
Meanwhile, as Fed policy and industry turmoil continue to boost risk assets, Gareth Soloway, market strategist at InTheMoneyStocks, warned that there could be more downside for Bitcoin and other cryptos. Speaking to Kitco News, the analyst ruled out claims that Bitcoin had reached a bottom when asked if the ongoing consolidation pointed to a recovery.
“According to the charts, that’s not saying much right now. That’s not to say we can’t have a little upside, but there are still some big headwinds that the market has to digest out there,” Gareth told Kitco host David Lin, noting that investors should be “very cautious” after the Fed signaled to raise interest rates further.
Gareth, who previously called Bitcoin’s fall to $20,000, stated that the asset would likely fall to a high-end target of $13,000 or a low-end target of $9,000. Referring to previous bear markets and considering the unique nature of current market drivers compared to previous bear markets, he also estimated that it would take longer for Bitcoin to transition into a bull market.
“We’re about a year and a half into this bear market. This stagnation means maybe a year and a half of stagnation before Bitcoin shoots up to the moon again.” he added.
