Difficult macroeconomic conditions have caused the cryptocurrency market to stagnate. Particularly, Crypto Market Critical Bitcoin has fallen by nearly 60% from its all-time high. In addition, Bitcoin’s price has been mired in the $18,000–$20,000 region for more than a month. Investors are frustrated by the lack of volatility in BTC, which means the price is neither rising nor falling. But one expert has revealed the crucial zone that will provide a robust Bitcoin purchase signal.
Recent Released: 30% Bitcoin Gain? Whales Live Longer: Why?
Eight Global CEO and prominent crypto expert Michael van de Poppe says BTC needs to break $19.4K-$19.6K definitely. He thinks that if Bitcoin can break over this resistance level, it will begin a significant upswing.
Michael thinks the rise could happen in the next two weeks based on the current structure of the US dollar and rates.
Explaining Bitcoin’s Problems
Macroeconomic factors affect the crypto market’s price action. According to Coinbase Research, the cryptocurrency market is highly correlated with the broader general market at the present time. Consequently, the crypto market reflects the movement of the stock market.
The Federal Reserve has adopted a tight monetary policy in an effort to reduce the rate of inflation. Similar actions are being taken by other central banks, including the European Central Bank and the Bank of England.
But the Fed’s restrictive approach is leading to a massive selloff in the cryptocurrency market. Bitcoin’s price has dropped by more than 60% from its all-time high. Bitcoin’s value has also fallen because of the US Dollar’s rise.
After reaching all-time highs, the US dollar has undermined the value of other currencies. Bitcoin’s value fell along with the rest of the cryptocurrency market and the stock market.
Will the Recession Be a Buy for Bitcoin?
It’s possible that the Federal Reserve will change course from its current hawkish monetary policy if a global recession becomes a real possibility. Bitcoin, if it continues to correlate with the rest of the stock market, could lose value during a recession.
Source: Google Trend