BTC’s downside may worsen as the $20,000 levels have undoubtedly shown no resistance to a further fall. That would trigger FUD and push BTC prices to $17,000 based on macro factors. The prime reason for this will be the release of the inflation data slated for next week. If inflation fails to curtail itself, the Fed will be forced to increase the interest rates!
What Does the Market Look Like for Upcoming Week?
200 MA is Bearish
‘Though success happened after July 10 for BTC, it failed to sustain itself. The coin rose a steady $1600; however, shortly thereafter, it registered a steady downside nonetheless. At the moment, BTC is trading at a below 200 Day MA and if that happens, it would mean that for the first time, the last bear market support will be compromised!
Social Media unrest in China has put the Asian market in doldrums. Citing this, the dollar has overrun a basket of other currencies, including the ones in Asia. Hong Kong and Shanghai composite indexes are trading at 1.5% and 3.1% lower. Whereas, the US Dollar index(DXY) has risen suddenly. These factors have given a fresh start to the BTC upside as its charts have been climbing ever since then. BTC moves inversely to DXY. However, how long this will be validated is a hard story to tell.