Bitcoin resumes slide amid mounting concerns about recession
- Bitcoin has made ‘a bottom’ but probably not ‘the bottom’, analyst says
- The largest cryptocurrency declines by as much as 2.9 per cent, holds above key US$20,000 level
“Bitcoin has made ‘a bottom’ but probably not ‘the bottom’,” said Mark Newton, head of technical strategy at Fundstrat Global Advisors. “Upside targets should materialise near US$23,300 with a max near $24,800 before prices pull back to likely challenge lows into the final week of June.”
The move off of sub-US$20,000 lows occurred as broader risk sentiment stabilised and speculative investors await their next trading prompts, Informa Global Markets wrote in a note on Tuesday.
The firm added that data from on-chain analytics firm Glassnode shows that as of June 20, 56.2 per cent of addresses were still worth more in dollar terms than when their coins entered them, which Informa said raises questions about the severity of the current bear market. That is compared with recent Glassnode data showing the average purchase price of all Bitcoins in circulation was around US$23,430 – so, above current levels.
Still, it’s the bigger picture that is really driving Bitcoin’s price, Informa said. “Macroeconomic conditions need to improve and the Fed’s aggressive approach to monetary policy has to subside before crypto markets see a bottom,” the firm wrote.