The theory of BTC serving as a hedge against inflation by some market analysts is a concern for some crypto brokers such as Pocket option and investors who bought more of the cryptos and are still holding on to their portfolios. The high rate of inflation has affected the price of BTC and the cryptocurrency market, heavily against the expectation of the investors.
However, some analysts believe that the BTC needs more time, and it has to be adopted globally. Find out more about the relevant technical levels and interesting events in the BTC market.
BTCUSD: Technical Analysis
Monthly Resistance Levels: 45000, 30000.
Monthly Support Levels: 18500, 17500, 21000.
The price of bitcoin could not sustain the 24500-dollar mark before the selling pressure resumed around the level to take the price down towards the 21000-support level. The market sentiment has not changed from the bearish trend because of the high rate of inflation that has crippled global economic activities.
How long will it take before the level of inflation reduces for the global economic activities to reach their peak? These are some questions running in the mind of crypto brokers.
Weekly Resistance Levels: $25200, $24297.
Weekly Support Levels: $22500, $2000.
After the bulls traded with high hopes of reaching the high of 24297 with the expectations for the bulls to gain momentum, their hope got faded when the market participants pulled out of the market because of the zone. It is a psychological level because of the broken level in the market structure. The selling pressure is likely to take the price down again for the week if the last low of the weekly candle should be taken out this week.
The week started with low activity in the BTCUSD market as retail traders, crypto brokers are waiting for the reaction of the price at the current zone of the market structure. If the Bulls can dominate the zone, we shall see the price go up during the week. However, the selling option is still open in the market.
Daily Resistance 25K, 24K.
Daily Support 18K, 20K
The BTCUSD pair saw the Bears push the price of bitcoin down strongly with about 10.38% gains at the close of the 19th August 2022 daily candlestick. Since the price could not break out above the resistance level of 25000. The Bears might be able to trade below the previous resistance level that is now a support level for the Bulls.
However, there is fear in the market as the price is around a sensitive area. The Bulls will want the level to hold as it did as of 26 July 2022 when it rejected the first retest at the zone. If the market structure of the 20000-dollar support level should give way for the crypto brokers in a short position, the price of bitcoin will retest the support level of 19250 as of 03 July 2022 for a breakout below scenario or the rejection of the seller’s price offer around the zone.
The Bullish momentum faded away as the price retested the resistance level of 25000. The zones did not only reject the bull’s price but also took the price down.
For the crypto brokers who wish to go long, they will have to see if the 20000-support level can hold the Bears from breaking out below the zone. If they succeeded to gain strength, we shall sell bullish engulfing candles around the zones.
The bearish scenario is still playing out as the short crypto brokers took the price down because the broken support serves as a resistance to the price when the zone was retested. If the bear’s can breakout below the current level of support (20000) the bitcoin price will move about 15% to the next level of 18000
Bitcoin BTC News Events
SCARAMUCCI EXPLAINS WHY BITCOIN WILL BECOME AN INFLATION HEDGE.
Many crypto brokers and crypto investors believe that bitcoin can serve as a hedge against inflation which led to the general acceptance of bitcoin and the accumulation of the BTC coin and other coins in large quantities. Market analysts like D.A Davidson and Chris Brendler believe that the bitcoin could become a hedge in the future because it is decentralized, and it is not under the control of the central bank.
It is of concern for investors as the recent price fluctuation and market sentiment are overwhelming the BTC’s underlying value and especially in the aspects of inflation. These happenings have discouraged many investors because the price of bitcoin shows that it cannot sever as a hedge against inflation.
The founder of Skybridge Capital Anthony Scaramucci a top supporter of bitcoin believes that bitcoin can still serve as a hedge against inflation because the BTC has not reached the stage of hedging against inflation. He believes that when the bitcoin status hits 1 billion BTC wallets, it will be able to hedge out inflation. For bitcoin to each such status, it must be generally accepted and adopted worldwide.
He also suggested that giant institutions like BlackRock can introduce products related to BTC and it will encourage people to know that institutional demand for cryptocurrency trading is growing and it will lead to mass adoption of bitcoin. The former White House Director of Communications believes that the current bearish trend will flush out meaningless projects. He said that the BTC market is still growing and it needs time to fix the volatility issues before it becomes a worthwhile investment option for investors and crypto brokers.
Conclusion and Projection
The BTCUSD pair saw another rejection of the price around the 24500 zone that the whales have placed their sell limits orders as anticipated previously. The sellers continue to short the market as they anticipate another breakout below the scenario of the current support level to take the price of bitcoin to a lower low in the market.
The sentiment shows fear and confusion in the crypto market as participants are sitting on the fence while the market continues to consolidate from daily charts.
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