The price of Bitcoin exceeded $30,000 in the last 24 hours, but then dropped below $29,500. The latest employment data suggests that this week could be challenging for investors. Federal Reserve Chairman stated that he wants to see inflation, wage increases, and easing in employment until the September meeting. However, the macro data is not at the desired level for now. So, what is the scenario expected by the famous crypto analyst?
Crypto Analyst’s Prediction
Popular crypto analyst known as Negentropic says that the US Dollar Index (DXY) is losing momentum, which is seen as positive for Bitcoin. Due to Fitch downgrading the US credit rating tonight, the stock market started with selling pressure. Although this situation does not cause a significant shake-up as expected, it seems to have slowed down the dollar.
Negentropic also states that the Nasdaq 100 is approaching its all-time high levels reached in late 2021.
“BTC needs to hold above $29,300 and test the $29,700 level. Reclaiming $30,400 upward and testing $31,000 is necessary. Do you remember the volumes around $23,000 earlier this year? Nevertheless, our bullish hypothesis remains unchanged. There are numerous factors supporting BTC’s upward movement, reducing the possibility of a decline to $23,000 or below.”
Will Bitcoin Price Increase?
After dropping to $28,500 this week, the king of cryptocurrencies quickly jumped to $30,000. The rise was largely speculative and related to the downgrade of the US credit rating. At the time of writing, the price is at $29,323 as sellers who do not believe in short-term recovery are strengthening their resistance walls. There are about 2 months until the Fed meeting, and the data so far is far from the targets set by the Fed for the interest rate ceiling.
Yesterday, Fed member Bostic stated that he does not expect an increase in the next meeting, but Powell does not take the risk of overtightening seriously. Moreover, the recession expected by many market experts in the US by the end of the year is also undermining investors’ risk appetite in the medium term.
For Negentropic to be proven right, the price of Bitcoin will need to make a daily close above the $29,700 resistance area. Currently, the current outlook does not match the picture drawn by the popular crypto analyst.
