Bitcoin (BTC) held $20,000 for another day on June 23 with calls for another 20% drop still surfacing.
Bitcoin below $10,000 is not impossible
Data from TUSEN Markets Pro and TradingView showed BTC/USD hovering just above the $20,000 mark in the 24 hours prior to writing.
As always, the behavior mirrored movements in US equity markets, which were flat on the day.
Remarks from Federal Reserve Chairman Jerome Powell provided only brief volatility. TUSEN noted that Powell’s congressional testimony provided no new information regarding macro politics.
As such, crypto commentators stuck to previous assertions – the outlook was uncertain, they said, but a potential further pullback may only involve a trip to $16,000.
“Consolidating $BTC in a wide range and then rising. MDD (maximum drawdown) is not as important as -20%,” Ki Young Ju, CEO of on-chain analytics platform CryptoQuant, wrote in part of a Twitter post.
Ki retweeted the analysis of popular Crypto Il Capo account, whose BTC holds had long been calling for a price drop.
In a separate article, Ki claims that “most Bitcoin cyclical indicators say the bottom” is here, and shorting BTC at current levels was therefore misguided.
“I don’t know how long it would take for consolidation in this range. Opening a big short position here doesn’t seem like a good idea unless you think $BTC is going to zero,” he wrote.
However, for monitoring resource material indicators, there was reason to be more inclined to take risks.
“At this stage, no one can say for sure if BTC will maintain this range or hit price levels below $10,000 again, but it would be foolish not to have a plan for this possibility,” a tweet argued.
“‘Never’ does not age well in crypto. Plan accordingly.”
The Fed does not plan a “de-COVID” balance sheet
In macro news, mounting pressure on the Eurozone manifested itself in the form of soaring natural gas prices amid a dwindling supply outlook.
Related: Bitcoin Hodler Data Suggests BTC Price Is “Really Close” To The Bottom – Analysts
In the United States, meanwhile, Powell made fresh comments on the Fed’s monetary tightening policy.
Shrinking the central bank’s balance sheet, he said in comments reported by media sources at the time of writing, now only plans to cut up to $3 trillion from its nearly $9 trillion in asset purchases.
Since February 2020, the Fed’s balance sheet has gained $4.8 trillion, meaning that even after the cuts, it will be above its pre-pandemic levels.
The balance sheet of the European Central Bank, meanwhile, hit new all-time highs this week despite runaway inflation.
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