(Bloomberg) — Bitcoin resumed its decline on Wednesday, coupled with weak stocks amid rising concerns about a global recession.
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The largest cryptocurrency is down 4.3% to $19,947 and is near the key $20,000 level as of 9:08am in London. Ether fell a maximum of 5% to $1,066.02. According to CoinGecko’s pricing, the Shiba Inu, the 14th largest cryptocurrency by market cap, rose 14% over the past 24 hours, although its momentum was waning.
Mark Newton, head of technical strategy at Fundstrat Global Advisors, said: “Bitcoin has made a ‘bottom’, but probably not a ‘bottom’.” “An upside target should be near $23,300 with a maximum of $24,800 before prices turn a potential challenge lower in the last week of June.”
The cryptocurrency has been moving in the same direction as stocks for months, and Wednesday’s move was no exception as investors’ appetite for riskier assets waned on rising fears about an economic slowdown. Bitcoin appears to be consolidating around the $20,000 level, which is similar to the actions of around $30,000 in May and June.
Informa Global Markets said in a note on Tuesday that there was volatility in the lows of less than $20,000 as broader risk sentiment stabilized and speculative investors waited for their next trading signals.
The firm said data from on-chain analytics firm Glassnode showed that as of June 20, 56.2% of addresses were still worth more in dollar terms than when their coins entered, which Informa said currently bears Raises questions about the seriousness of the market. , This is compared to recent Glassnode data, which showed that the average purchase price of all bitcoins in circulation was around $23,430 – hence, well above current levels.
Still, it is the bigger picture that is really driving the price of bitcoin, Informa said.
“Macroeconomic conditions need to improve and the Fed’s aggressive approach to monetary policy will need to ease before crypto markets bottom out,” the firm wrote.
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