Bitcoin (BTC) ran out of steam at $ 23,000 today, June 16, after the US Central bank decided to raise the largest key interest rate in almost 30 years.
Bitcoin Price Chart (Bitstamp). Source: TradingView
Dollar falters after key rate hike
As the data from Cointelegraph Markets Pro and TradingView show, BTC/USD had initially reached an intermediate high of $ 22,957 before the “Federal Reserve” announced its key interest rate increase of 0.75%, the highest increase since 1994.
As a result, the upswing was almost abruptly stopped, and shortly after the opening of trading on Wall Street, the Bitcoin price went back down by $ 2,000 to just $ 21,000.
$BTC Did indeed fail to hold the mid range and fell back to the range low which it has held so far.
This range low is my line in the sand if BTC doesn’t want to revisit the lows and possibly test sub $20K levels.
We can target the mid range (and higher) again. https://t.co/mFDHX0B57x pic.twitter.com/mEqOoGA9gK
– Daan Crypto Trades (@DaanCrypto) June 16, 2022
After the decision of the US Central Bank, the trader Crypto Tony is therefore again targeting the US dollar as an important indicator for any bottoming of Bitcoin.
Shortly after the announcement, the US dollar index (DXY) was able to climb to a twenty-year high in return, which was followed by slight losses again.
“The dollar is approaching an important resistance area, if it fails at this, then bottoming out could soon begin for Bitcoin,” as the analyst deduces from this. And further:
“However, I’m still expecting another upswing before it comes back, which in turn would mean another downswing for BTC, so be careful.“
US Dollar Index (DXY). Source: TradingView
Meanwhile, the experienced trader Peter Brandt, who is known for his accurate predictions with regard to the bottom formations of Bitcoin, warns that an upswing from the important $ 20,000 mark would probably only be a short breather, and not a real recovery.
“In principle, the bear market for the crypto market is far from over. I was actually hoping that we would now see a new climbing section, but that probably still takes some time, “ as Josh Rager pessimistically analyzes.
The EU and Japan are also under pressure
Since the American stock market is now back in the red, although it was only able to increase after the announcement of the US Central Bank, the fear of new losses is also increasing on the other stock markets.
While the European Union (EU) is struggling with a decline in Italian government bonds, the current weakness of the yen continues to be fuelled in Japan.
The idea of yield curve control needs to be retired. #Japan is breaking. pic.twitter.com/P4YL3kBLzS
– Ansel Lindner (@AnselLindner) June 16, 2022
The combination of a strong US dollar and further quantitative easing ensures that USD/JPY is at its highest level since the end of the 90s in direct comparison.
Former BitMEX CEO Arthur Hayes also recently took a close look at the development of the major economies with regard to their impact on the Bitcoin exchange rate.
Hayes comes to the conclusion that the difficult macroeconomic situation in the medium and long term ensures that BTC can establish itself as a fixed size on a global level, but the market-leading cryptocurrency and its investors would first have to bleed a little before Bitcoin could possibly even reach $ 1 million in the future.
USD/JPY. Source: TradingView
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