The economic situation in the world and the macro outlook are unfavorable not only for BTC, but also for other asset classes. The price of the major cryptocurrency is still hovering below the $20,000 mark at the time of writing, and a reversal of the long-term trend appears to be in sight.
A strong psychological level of support is located at the border 20,000 dollars. The market price forms a potential local minimum in this area for a relatively long time. The next period can therefore be decisive.
According to the analyst Rajan Dhalla is the limit 25,000 dollars one of the most important price levels. This price is supposed to signal a possible recovery of BTC and the end of the long-term correction. On the other side, BTC is facing an onslaught of sellerswhich could push the price to new lows.
On the chart below, we can see the long-term resistance at around $25,000, which also represents the value of the previous high and thus defines the reversal area.
BTC will influence the Fed’s decision
The Fed’s interest rate hikes in response to persistently high inflation have many investors worried about more devaluation of prices BTC and cryptocurrency generally. However, if BTC eventually manages to hold $20,000, this may temporarily change market sentiment and the cryptocurrency could find a bottom.
It should not be forgotten that in the past the bottom was always formed over a long period of time and carried with it increased volatility. Therefore, it is risky to say that prices have already reached a bottom. Currently, this is also confirmed by the number of hodlers, who make up 62% and have not moved coins for more than a year. Short-term holders thus retreat, which means low demand and network activity.
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