Bitcoin clings to $20K as analysts warn of a long, bumpy ride for the foreseeable future

June 30, 2022 Coin Telegraph

Bitcoin clings to K as analysts warn of a long, bumpy ride for the foreseeable future

BTC price briefly fell below $20,000 and traders warn that the all-important support level could eventually crumble after enduring an increasing number of retests.

Bullish cryptocurrency traders hoping that the market was on a path higher received a dose of reality on June 29 as the price of Bitcoin (BTC) dipped below $20,000 again during intraday trading.

Data from Cointelegraph Markets Pro and TradingView shows that the top cryptocurrency fell under pressure in the early trading hours on June 29 with bears managing to drop BTC to a daily low of $19,857 before price was bid back above the $20,000 mark.

*BTC/USDT 1-day chart. Source: TradingView*

Here’s a look at what several analysts are saying comes next for Bitcoin as it struggles to gain momentum and break free of the current price range.

Prepare for a choppy summer

A word of warning for traders looking to enter the market at these levels was offered by analyst and pseudonymous Twitter user IncomeSharks, who posted the following chart showing one possible path that BTC could take in the months ahead.

IncomeSharks said,

“More people end up losing money in chop zones than the big drop zones. I'm bullish mid term for a lot of reasons. This summer is about swing trading and accumulation. I will derisk/sell majority end of November/December.”

The possibility of a stronger pullback was also noted by Twitter user Altcoin Sherpa, who posted the following chart citing the importance of the $20,000 level.

Altcoin Sherpa said,

“Around 20K will be a pretty important area on lower timeframes; lose that and we see a move to the range lows around 17K again IMO. If this area is the bottom, I expect to see 17-18K tested again to be honest.”

Price could pullback to $16,400

According to Rekt Capital, the recent price action mirrors other bear markets and could provide some clues on where the bottom will be.

During the week of June 20, Bitcoin saw a similar buy-side volume as it experienced during the 2018 bear market bottom, near the 200-week moving average (MA).

Rekt Capital said,

“During the formation of the 2018 bottom however, that buyer volume preceded extra -20% downside. If $BTC were to drop an extra -20% soon, price would reach ~$16,400.”

Consolidation leads to accumulation

A more positive outlook was offered by Twitter user Miles J Creative, who posted the following chart supporting the thesis that a “bull phase is coming.”

*BTC price vs. 1yr+ HODL wave. Source: Twitter*

The analyst said,

“In Bitcoin's history it has only had the current accumulation structure when exiting not entering bear markets. Perhaps this time is different but accumulation is saying a bull phase is coming.”

The overall cryptocurrency market cap now stands at $897 billion and Bitcoin’s dominance rate is 42.7%.

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

BTC Markets becomes first Australian crypto firm to get a financial services license

June 21, 2022 Coin Telegraph

afs license

While the license isn’t currently needed for crypto companies in Australia, BTC Markets says it is preparing the exchange for upcoming regulations.

Australian-based cryptocurrency exchange BTC Markets has become the first crypto company in the country to gain a financial services license.

The license was issued by the country’s financial regulator, the Australian Securities and Investments Commission (ASIC), to BTC Markets’ sister company BTCM Payments.

We have an exciting announcement to make:

BTC Markets is the first Australian crypto exchange to successfully go through the full AFSL application process via our sister company, BTCM Payments!

✅AFSL attained
✅ISO Certified
✅SOC 2 on the way!#crypto #bitcoin #finance
— BTC Markets (@BTCMarkets) June 21, 2022

An Australian Financial Services (AFS) license allows the holder to give advice, deal in and create a market for a financial product. It also permits the provision of custodial or depository services, among other perks.

While crypto and digital asset companies don’t require an AFS to provide services due to the lack of regulation in the country, BTC Markets says the move allows it to more closely bridge the gap between traditional finance and crypto while offering new products to its customers.

It marks the end of an almost two-year wait for the firm for the AFS license, which was registered in August 2020.

BTC Markets has certification from the International Organization for Standardization (ISO) for information security management and is certified by the country’s crypto industry body, Blockchain Australia.

BTC Markets CEO Catherine Bowler said the license would prepare her exchange business for what she believes is impending regulation and complements its progress in obtaining a System and Organization Controls (SOC) 2 certification.

BTC Markets has established itself as a key player in the Australian crypto industry with $4.7 million in daily volume, according to CoinGecko.

In February, the exchange signed a deal with the stock market trading platform SelfWealth to offer SelfWealth users access to trade Bitcoin (BTC), Ether (ETH), Ripple (XRP), Chainlink (LINK) and Uniswap (UNI) from June 30.

Other exchanges have followed suit. Earlier this month, Australian crypto exchange Swyftx completed a $1.5 billion merger deal with online stock market investing platform Superhero.

Bitcoin critics say BTC price is going to $0 this time, but these 3 signals suggest otherwise

June 18, 2022 Coin Telegraph

Bitcoin critics say BTC price is going to alt=

Bitcoin Price

Bitcoin haters are ready to read its obituary, but on-chain data and other indicators suggest the current price range could be a good buy zone.

Like clockwork, the onset of a crypto bear market has brought out the “Bitcoin is dead” crowd who gleefully proclaim the end of the largest cryptocurrency by market capitalization.

If #Bitcoin can collapse by 70% from $69,000 to under $21,000, it can just as easily fall another 70% down to $6,000. Given the excessive leverage in #crypto, imagine the forced sales that would take place during a sell-off of this magnitude. $3,000 is a more likely price target.
— Peter Schiff (@PeterSchiff) June 14, 2022

The past few months have indeed been painful for investors, and the price of Bitcoin (BTC) has fallen to a new 2022 low at $20,100, but the latest calls for the asset’s demise are likely to suffer the same fate as the previous 452 predictions calling for its death.

*Bitcoin obituary count. Source: 99Bitcoins*

Resolute Bitcoiners have a bag full of tricks and on-chain metrics they use to determine when BTC is in a buy zone, and now is the time to take a closer look at them. Let’s see what time-tested metrics say about Bitcoin’s current price action and whether the 2021 bull market was BTC’s last hurrah.

Some traders always buy bounces of the 200-week moving average

One metric that has historically functioned as a solid level of support for Bitcoin is its 200-week moving average (MA), as shown in the following chart posted by market analyst Rekt Capital.

*BTC/USD vs. 200-week MA weekly chart. Source: Twitter*

As shown in the area highlighted by the green circles, the lows established in previous bear markets have happened in areas near the 200-MA, which has effectively performed as a major support level.

Most times, BTC price has had a tendency to briefly wick below this metric and then slowly work its way back above the 200-MA to start a new uptrend.

Currently, BTC price is trading right at its 200-week MA after briefly dipping below the metric during the sell-off on June 14. While a move lower is possible, history suggests that the price will not fall too far below this level for an extended period.

Multiyear price supports should hold

Along with the support provided by the 200-week MA, there are also several notable price levels from Bitcoin’s past that should now function as support should the price continue to slide lower.

*BTC/USDT 1-week chart. Source: TradingView*

The last time the price of BTC traded below $24,000 was in December 2020, when $21,900 acted as a support level that Bitcoin bounced off of prior to its run-up to $41,000.

Should support at $20,000 fail to hold, the next support levels are found near $19,900 and $16,500, as shown on the chart above.

MVRV indicates its time to start accumulating

One final metric that suggests BTC may be approaching an optimal accumulation phase is the market-value-to-realized-value ratio (MVRV), which currently sits at 0.969.

*Bitcoin market value to realized value ratio. Source: Glassnode*

As shown on the chart above, the MVRV score for Bitcoin has spent most of the time over the past four years above a value of 1, excluding two brief periods that coincided with bearish market conditions.

The brief dip that took place in March 2020 saw the MVRV score hit a low of 0.85 and remain below 1 for a period of roughly seven days, while the bear market of 2018 to 2019 saw the metric hit a low of 0.6992 and spent a total of 133 days below a value of 1.

While the data does not deny that BTC could see further price downside, it also suggests that the worst of the pullback has already taken place and that it is unlikely that the current extreme lows will persist for the long term.

Three Arrows Capital weighs bailout as Kyle Davies breaks silence: Report

June 17, 2022 Coin Telegraph

BTC Markets

All options are on the table for 3AC after this week’s crypto market collapse triggered mass liquidations for the hedge fund.

Crypto-focused hedge fund and venture capital firm Three Arrows Capital is considering the sale of remaining assets and even a bailout as it grapples with the prospect of insolvency in the wake of a violent collapse in digital asset markets.

The firm, which also goes by 3AC, has hired legal and financial advisers to explore solutions for its investors and lenders, The Wall Street Journal reported Friday. Several options are on the table, including asset sales and a rescue package by another firm, co-founder Kyle Davies told the Journal. In the meantime, 3AC is looking to buy more time by negotiating a tentative agreement with existing creditors.

Davies, who said he still believes in the future of crypto, disclosed the extent of 3AC’s participation in a $1 billion token sale issued by Luna Foundation Guard (LFG), a nonprofit organization set up to defend the Terra ecosystem’s stablecoin peg, in February of this year. Davies said that 3AC bought roughly $200 million in LUNC (previously LUNA) tokens during the sale, which also had participation from venture firms DeFiance Capital, Republic Capital, GSR and Tribe Capital, among others.

Earlier this week, a whistleblower from the Terra Community Forum revealed that 3AC had purchased a total of 10.9 million locked LUNC worth nearly $560 million. That position is now worth less than $1,000.

Three Arrows Capital bought 10.9M locked LUNA for $559.6m - it's now worth $670.45.

Ouch
— Crypto Maxi (@cryptoMaxi420) June 14, 2022

In addition to being exposed to the Terra ecosystem collapse, 3AC incurred massive liquidations across multiple positions this week after the price of Bitcoin (BTC) and Ether (ETH) plunged to their lowest levels since December 2020.

As Cointelegraph reported on Thursday, Three Arrows Capital failed to meet margin calls from a group of lenders that included BlockFi. These firms liquidated at least some of 3AC’s positions.

Bitcoin traders expect a ‘long consolidation’ phase now that BTC trades below $21K

June 16, 2022 Coin Telegraph

Bitcoin traders expect a ‘long consolidation’ phase now that BTC trades below K

Bitcoin Price

Analysts say the entire crypto market is in for a very long consolidation and accumulation period following BTC’s current drop to 2017 highs.

Crypto traders had a brief opportunity to pause and take stock of where things are on June 16 as the relentless selling that has hammered Bitcoin (BTC) and the wider market over the past week began to relent despite an ongoing sell-off in the traditional markets.

Data from Cointelegraph Markets Pro and TradingView shows that after climbing to a high of $23,000 in the early trading hours on June 16, the price of Bitcoin slowly trended down on diminished trading volume to hit a low at $20,765.

Here’s what several analysts in the market are saying about the outlook for Bitcoin moving forward as crypto traders try to determine if the bottom is in or if there is more downside ahead.

Expect multi-month consolidation at the 200-week MA

A macro perspective of the journey that Bitcoin has taken over the years and how its past can offer insight into the current market setup was discussed by analyst and pseudonymous Twitter user Rekt Capital, who posted the following chart highlighting BTC’s behavior near its 200-week moving average (MA).

Rekt Capital said,

“If #BTC continues to hold the orange 200-week MA as support and the black 200-week EMA figures as resistance… $BTC could form an Accumulation Range here, just like in 2018. This would enable multi-month consolidation to even as far as December 2022.”

If this is the scenario that plays out, then crypto traders need not rush to accumulate BTC, a point noted by crypto trader and pseudonymous Twitter user Altcoin Sherpa, who posted several charts highlighting the amount of time that BTC spent in previous accumulation phases.

The longest accumulation period noted by Altcoin Sherpa is the 287 day span outlined in the chart above. Other examples provided include the 133 days of accumulation between November 2018 and April 2019 and the 63 days of accumulation between May 2020 and July 2020.

Altcoin Sherap said,

“It's likely that you will get plenty of time to catch a bottom during the accumulation phase. #Bitcoin takes a while for its bottom to form and you should probably just go out and touch some grass instead of knife catching.”

Bitcoin could reclaim $25,000, if we're lucky

A more positive take on the latest developments for Bitcoin was offered by crypto trader Nebraskangooner, who provided the following chart noting that the “lower Fibonacci level has been reached.”

*BTC/USDT 1-week chart. Source: Twitter*

Nebraskangooner said,

“Let's see if daily can close strong above resistance and then we have a chance for $25,000 and possibly mid $30K's. For the first time in months, we might finally be ready for the bounce everyone has been calling for since $40K.”

The RSI 1000 provides a bullish sign

Another trader who has spotted a potentially bullish signal on the chart for BTC is pseudonymous Twitter user TAnalyst, who posted the following chart highlighting the recent low for the relative strength index (RSI) 1000.

*BTC/USD vs. RSI 1000 1-day chart. Source: Twitter*

TAnalyst said,

“#Bitcoin It is only on bottom days, BEFORE BULL RUNS, that the daily RSI(1000) is below 50. Today : RSI(1000) = 49.91. Conclude.”

Based on the history of an RSI 1000 score falling below 50, the price of Bitcoin could soon begin to climb higher.

Perhaps the best summary of the current state of the Bitcoin market and the confusion it is causing crypto traders was offered by crypto educator IncomeSharks.

#Bitcoin- At a price where shorting no longer makes sense. But also at a price that longing is still very risky. Unless using tight risk management this is a spot buy only zone for majority. It's ok to wait for a trend to develop to start trading again.
— IncomeSharks (@IncomeSharks) June 16, 2022

The overall cryptocurrency market cap now stands at $905 billion and Bitcoin’s dominance rate is 44.3%

Further downside is expected, but multiple data points suggest Bitcoin is undervalued

June 16, 2022 Coin Telegraph

Bitcoin Price

Traders are taking a hands-off approach to BTC, but a number of price metrics suggest Bitcoin is undervalued even though further downside is expected.

The outlook across the cryptocurrency ecosystem continue to dim as the sharp downtrend that was initially sparked by the collapse of Terra now appears to have claimed the Singapore-based crypto venture capital firm Three Arrows Capital (3AC) as its next victim.

As large crypto projects and investment firms begin to collapse on a weekly basis, the prospect of a long, drawn out bear market is a reality investors are beginning to accept.

Based on a recent Twitter poll conducted by market analyst and pseudonymous Twitter user Plan C, 41.6% of respondents indicated that they thought the Bitcoin (BTC) bottom will fall between the $17,000 to $20,000 range.

*Total Bitcoin supply in profit held by short-term holders. Source: Twitter*

Addresses holding at least 1 BTC hits a new high

In the midst of the heightened volatility and rapid price decline for Bitcoin, many would expect to see traders dumping their holdings and fleeing to the sidelines in a bid to maintain their purchasing power.

While it has indeed been the case that falling prices and liquidations have pushed many traders out of the market, low-priced Bitcoin has also attracted some buyers who have patiently been waiting for the right entry point.

*Number of Bitcoin addresses holding a balance ≥ 1 BTC. Source: Glassnode*

Data shows that the number of Bitcoin addresses that hold at least 1BTC has now hit a new all-time high and it appears that it will increase in the near future if sub-$20,000 BTC continues to attract buyers.

“BTC is cheaper than it looks”

Market tops and bottoms are usually overreactions to developments and retail traders have a tendency to FOMO when the price is rising, yet they are quick to sell when bad news starts to spread.

A more nuanced analysis of the current value of Bitcoin was discussed by Jurrien Timmer, director of global macro at Fidelity, who posted the following chart and questioned if “BTC is cheaper than it looks?”

*Bitcoin price vs. value. Source: Twitter*

Timmer said,

“If we consider a simple “P/E” metric for BTC to be the price/network ratio, then that ratio is back to 2017 and 2013 levels, even though BTC itself is only back to late 2020 levels. Valuation often is more important than price.”

Timmer added that BTC is currently priced below its fair market value with the Bitcoin dormancy flow indicator, which shows “how technically oversold [it] is.”

*Bitcoin dormancy flow. Source: Twitter*

Timmer said,

“Glassnode’s dormancy flow indicator is now to levels not seen since 2011.”

Taken together, the rise in Bitcoin addresses holding more than 1 BTC combined with the asset's historically oversold price and undervalued price/network ratio suggests that the downside possibility may not be as bad as many traders think.

Bitcoin price climbs to $22.5K after Fed 75 basis point hike aims to cap runaway inflation

June 15, 2022 Coin Telegraph

Bitcoin Price

BTC and altcoins generated nominal gains after the Federal Reserve raised the benchmark interest rate by 0.75%, the largest hike in 28 years.

Global financial markets were squarely focused on the U.S. Federal Reserve and its decision to raise interest rates by 75 basis points on June 15, the largest increase in 28 years as the central bank fights to tamp down the highest inflation rates in over four decades.

Data from Cointelegraph Markets Pro and TradingView shows that Bitcoin (BTC) and the wider cryptocurrency market fell under pressure in the early trading hours on June 15 as rumors of the possible collapse of Three Arrows Capital (3AC) spread across the ecosystem, which is still grappling with the ongoing Celsius debacle.

*Daily cryptocurrency market performance. Source:* *Coin360*

Following the announcement from Federal Reserve Chair Jerome Powell that there would be a 75 basis point hike, the price of Bitcoin briefly spiked to $22,520 before pulling back to $21,500.

*BTC/USDT 4-hour chart. Source: TradingView*

The altcoin market likewise saw a brief price pump as the dire predictions of a possible 100 basis point hike failed to materialize and the market got largely what it expected from June 15 Federal Open Market Committee (FOMC) meeting.

Traditional markets responded positively to the announcement with the S&P 500, Dow and NASDAQ all trading in the green for the day, but traders would be wise to see how markets behave at the daily close and tomorrow's opening bell.

Analysts digest the rate hike and its possible impact on crypto prices

Shortly after Powell announced the 75 basis point hike, projections on when the Fed would start to cut rates started rolling in with the dominant consensus being that they would begin in 2024.

BREAKING: The biggest rate increase since 1994 from the FED.

However, expectations from FED policymakers are that they'll be starting to cut rates in 2024.
— Michaël van de Poppe (@CryptoMichNL) June 15, 2022

The main reason for the rise in interest rates has been soaring inflation, which came in at a year-over-year increase of 8.6% according to the latest Consumer Price Index (CPI) print, which was higher than the analysts had predicted.

Some analysts have begun to speculate that the reason for the highest rate hike in 28 years is part of an effort by the Federal Reserve to try and get ahead of the curve and establish enough leg room to be able to pause hikes in the future if economic conditions continue to worsen.

They seem to be coming around to what I thought they would do in January (even before Ukraine). Frontload hikes which gives them cover to hit the pause button later while things may still be a bit too hot. I would expect to hear hawkish rhetoric today (gotta hike anyway).
— The Long View ✪ (@HayekAndKeynes) June 15, 2022

Overall, the rate hike, which was largely expected, appears to have been priced into the crypto market because prices remained relatively flat following the announcement and currently, more crypto-specific developments are dominating the headlines in the sector.

The overall cryptocurrency market cap now stands at $931 billion and Bitcoin’s dominance rate is 44.5%.

Bitcoin has support at $23K, but analysts warn of a dire drop to $8K as global debt unwinds

June 13, 2022 Coin Telegraph

Bitcoin has support at K, but analysts warn of a dire drop to K as global debt unwinds

Bitcoin Price

BTC’s sell-off is easing slightly, but traders are afraid that negative newsflow and future U.S. interest rate hikes could push the price lower.

Bitcoin's month-long (BTC) choppy price action came to an end on June 13 after a deep market sell-off pressed the top cryptocurrency under the $29,000 support. The move took place as equities markets also sold-off sharply, hitting their lowest levels of the year.

Data from Cointelegraph Markets Pro and TradingView shows that the Bitcoin sell-off began late in the day on June 12 and escalated into midday on June 13 when BTC hit a low of $22,592.

Here’s a look at what several market analysts are saying about Bitcoin's move lower and whether this is the final capitulation event before the long-awaited price bottom.

Is there solid support at $23,000?

Previous instances of bear market capitulation have seen a solid level of support at Bitcoin’s 200-week moving average as shown in the following chart posted by market analyst and pseudonymous Twitter user Rekt Capital.

Based on the trend from the last two cycles, Rekt Capital suggested that it's possible that BTC could see a “macro double bottom at the 200-week moving average” moving forward if the price action plays out in a similar fashion.

Rekt Capital said,

“If so, then $BTC is very close to forming its first Macro Bottom at the 200-week MA at ~$23,000. The second Macro Bottom could form in about two years' time at a price point of ~$41,000.”

Analysts say "max pain" is at $13,330

Insight into where Bitcoin could potentially be headed should it continue to break below the established support levels was provided by data from Whalemap, who posted the following chart highlighting the previously established support levels that could now flip to resistance.

*Bitcoin realized price by address. Source: Twitter*

Whalemap said,

“#Bitcoin has broken through key realized price supports where they will likely become our new resistances. $13,331 is the ultimate max pain bottom.”

In an extreme, Bitcoin could pullback to $8,000

According to Francis Hunt, a market analyst at The Market Sniper, Bitcoin price could drop to as low at $8,000 before hitting a real bottom.

Hunt said,

“The accumulation points would be $17,000 to $18,000. This $15,000 comes out of the blue head and shoulders there, that would be a pretty nasty downturn, and there is a bear flag target, a little less strong on the bear flag target at $12,000, and a full round trip will take you back to our funnel at $8,000 to $10,000.”

Bitcoin price falls below its ‘realized price’ but is it time to buy the dip?

June 13, 2022 Coin Telegraph

Bitcoin Price

Another wave of selling hit BTC and sent its price to lows not seen since December 2020. Does on-chain data suggest this dip is worth buying?

On June 13, cryptocurrency prices plunged deeper into bear market territory after Bitcoin (BTC) sliced through its current trading range and briefly touched $22,600, its lowest level se since December 2020.

According to BTC historical data , the market has now reached valuation metrics that show the price is severely oversold and perhaps near a bottom. Bitcoin has now fallen below its realized price, which represents the average price of every coin in supply based on the time it was last spent on-chain.

*Bitcoin realized price vs. actual price. Source: Glassnode*

While the pain that this most recent capitulation has wrought across the ecosystem can’t be understated, the one glimmer of hope it offers weary crypto traders is that the worst of the decline could have occurred. The coming days will confirm this theory and proof would be institutions and retail traders stepping in to buy the dip.

"Shrimps and whales" accumulate

On-chain data shows that not all traders feel devastated about Bitcoin at yearly lows. Shrimp wallets, wallets that hold less than 1 BTC, and whale wallets with more than 10,000 BTC have been in accumulation mode since the old Terra (LUNA), now known as Luna Classic (LUNC), collapsed in early May.

*Bitcoin accumulation trend score by cohort. Source: Glassnode*

According to data from blockchain intelligence provider Glassnode, shrimp wallets “have seen a net balance growth of +20,863 since the May 9th Luna crash,” and a total increase of 96,300 BTC since November's all-time high (ATH).

Whale wallets have likewise been busy during this period of time as “this cohort has a monthly position change peak of ~140k BTC/month” and has added a total of +306,358 BTC since its all-time high in November.

Support is limited in the mid-$20,000 range

Part of the reason for the rapid sell-off on June 13 was the lack of demand in the $20,000 to $27,000 range as shown on the following entity-adjusted unspent realized price distribution chart.

*Entity-adjusted unspent realized price distribution. Source: Glassnode*

While there is a heavy amount of demand near the $30,000 and $40,000 price ranges, some of the lowest volumes were found between $20,000 and $27,000, which left little support as the price of BTC crashed in the early hours on June 13.

Relief may be in sight, however, as the saying goes “it's always darkest before the dawn” and this could apply to the current state of the crypto market based on several metrics.

According to the RVT ratio, which compares the realized capitalization against the daily volume settled on-chain, “the network valuation is now 80 times larger than the daily value settled,” which indicates a low amount of on-chain activity.

*Bitcoin entity-adjusted RVT ratio. Source: Glassnode*

Glassnode said,

“In past bear cycles, an underutilized network has provided confluence with bear market bottoms.”

The RVT ratio is currently at its highest level since 2010, which may suggest that the market has reached the point of max pain and could see improvements soon, but the possibility of further weakness can not be ruled out.

The overall cryptocurrency market cap now stands at $980 billion and Bitcoin’s dominance rate is 46.3%.

Bitcoin, altcoins sell-off on record-high inflation, but traders still expect BTC to consolidate

June 10, 2022 Coin Telegraph

Bitcoin Price

Global financial markets and crypto sold off after June 10’s 8.6% CPI print showed inflation remains a persistent challenge.

Global financial markets once again find themselves trending lower on June 10 after the Consumer Price Index (CPI) came in at a blistering 8.6% year-over-year increase, the highest print since 1981.

The hotter-than-expected CPI print resulted in a collapse of the $30,000 support and Bitcoin (BTC) price sold off to a daily low of $28,852 before dip buyers managed to bid the price back above $29,000.

Here’s what several analysts in the market are saying about the outlook for Bitcoin moving forward since there appears to be little relief on the inflation front and the Federal Reserve is still determined to raise interest rates.

Dollar strength weighs heavily on risk assets

The effect of the high CPI print on two benchmarks of financial markets, the dollar index (DXY) and the S&P 500 (SPX), was touched on by il Capo of Crypto, who posted the following charts noting that “After CPI results, #DXY continues its pump and #SPX keeps free-falling.”

*DXY 4-hour chart vs. SPX 2-hour chart. Source: Twitter*

Market analyst Kevin Svenson also said that the Fed's inability to curb inflation is likely to translate to choppy price action for the next year.

With inflation, at 8.6% that means increased rate hikes are likely. $DXY is going parabolic. #BTC and most asset classes are likely going to have to deal with lots of ranging at the lows. Sideways for a year possibly.

Instant recovery is not likely.
— Kevin Svenson (@KevinSvenson_) June 10, 2022

There's potential for a pullback below $28,000

Should the price of BTC continue to trend lower, crypto trader and pseudonymous Twitter user Altcoin Sherpa says trading below $28,000 is possible.

Altcoin Sherpa said,

“$BTC: EMAs look the best they've looked in a while on the 4h but the overall high time frame market structure remains bearish. Not really doing anything active rn, just observing. Seems clear that $28K> is next up if this current area gets lost.

BTC needs to reclaim $30K to prevent further downside

Insight into what it would take to avoid a pullback to the support at $28,000 was provided by market analyst and pseudonymous Twitter user CrediBULL Crypto, who posted the following chart showing the “unfortunate” retrace from $30,000, the area. The analyst suggested that this “was the moment where we needed to see follow through.”

CrediBULL Crypto said,

“On support, but it's been tested four times now, so more likely it gives way to $28K. IF we can get back above $30K, then $28K may be avoided.”

The overall cryptocurrency market cap now stands at $1.192 trillion and Bitcoin’s dominance rate is 46.6%.

BTC Markets

Prepare for a choppy summer

Price could pullback to $16,400

Consolidation leads to accumulation

Some traders always buy bounces of the 200-week moving average

Multiyear price supports should hold

MVRV indicates its time to start accumulating

Expect multi-month consolidation at the 200-week MA

Bitcoin could reclaim $25,000, if we're lucky

The RSI 1000 provides a bullish sign

Addresses holding at least 1 BTC hits a new high

“BTC is cheaper than it looks”

Analysts digest the rate hike and its possible impact on crypto prices

Is there solid support at $23,000?

Analysts say "max pain" is at $13,330

In an extreme, Bitcoin could pullback to $8,000

"Shrimps and whales" accumulate

Support is limited in the mid-$20,000 range

Dollar strength weighs heavily on risk assets

There's potential for a pullback below $28,000

BTC needs to reclaim $30K to prevent further downside

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