Home Cryptocurrency In new $1M BTC price prediction, IMF recession warning sees Bitcoin falling below $21,000

In new $1M BTC price prediction, IMF recession warning sees Bitcoin falling below $21,000

by WOOWinvest
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In new $1M BTC price prediction, IMF recession warning sees Bitcoin falling below $21,000


On July 26, Bitcoin (BTC) fell below $21,000 for the first time in eight days as Wall Street prepares to make a decision on U.S. anti-inflation policy.

BTC/USD 1 hour candle chart (Bitstamp). Source: TradingView

Fed nervousness tests market resolve

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD ended a period of sideways trading at Wall Street’s open, hitting a low of $20,788 on Bitstamp.

Relative to its July 20 high of $24,280, the pair is now down more than 14% amid heightened jitters in risk assets in anticipation of the Fed’s July 27 interest rate decision.

The higher the Fed raises its benchmark interest rate, the more problematic the outlook for crypto investors, as tightening policy means more conservative conditions prevail across the economy.

“BTC has lost higher lows, which represents a lower time frame technical uptrend,” he told Twitter followers alongside an illustrative chart.

On other macro fronts, the International Monetary Fund (IMF) released its July 2022 World Economic Outlook, forecasting a marked slowdown in global growth, which should average 3.2% this year and 2.9% in 2023.

“Recession risks are particularly acute in 2023, when growth is expected to bottom in several economies, household savings accumulated during the pandemic will decline, and even a small shock could bring the economy to a standstill,” it wrote.

“For example, according to the latest forecast, the U.S. will grow by just 0.6% year-on-year in real GDP in the fourth quarter of 2023, making it increasingly challenging to avoid a recession.”

Looking at the daily timeframe, popular trader and analyst Rekt Capital warned that Bitcoin has lost its uptrend as the Fed event looms.

“BTC has lost higher lows, which represents a lower time frame technical uptrend,” he told Twitter followers that day.

“The trend has turned.”

Another article described the current pullback as a logical sequel to Bitcoin’s abandonment of its 200-week moving average as support after a brief recovery last week.

“Patience is a virtue,” continued trader and analyst Anbessa.

“Waiting for reversal pattern to re-enter. No setup to get into $21,6k so we are patient.”

Anbessa also said that at current prices, there is “no need to FOMO” into the market.

Is $1 million still in the queue?

Others have reasons to be cautiously bullish on Bitcoin, and their belief increases with the time frame observed.

Related: 3 Signs Bitcoin Price Is Forming a Potential ‘Macro Bottom’

“The turbulent week played out as expected,” continued a colleague from the Twitter account IncomeSharks. In a more optimistic forecast, IncomeSharks said it would see a $30,000 price tag “within a few months.”

“This is not the time to be bearish and sell, that was last week,” it added.

Meanwhile, PlanB, creator of the Stock-to-Flow Bitcoin price model, insists that BTC/USD could still trade as high as $1 million by 2027.

At the same time, he predicted that day that the US stock market will reach unprecedented new heights.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk and you should do your own research when making a decision.



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