‘Foolish’ to deny Bitcoin price can go under $10K — Analysis



Bitcoin (BTC) protected $20,000 for another day on June 23rd with another 20% drop still to be seen.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bitcoin under $10,000 is not impossible

Data from Cointelegraph Markets Pro and TradingView shows that BTC/USD is trading slightly above the $20,000 mark in the 24 hours of writing.

As always, the behavior was reflected in the equity markets of the United States, which remained flat on the day.

Federal Reserve Chairman Jerome Powell’s comments provided only brief volatility. Cointelegraph noted that Powell’s congressional testimony did not reveal any new information about the macro policy.

As such, crypto commentators stuck to previous claims — the outlook was uncertain, they said, but a possible fresh drop could only involve a trip to $16,000.

Ki Young Joo, CEO of on-chain analytics platform Cryptoquant, “Consolidating $BTC in a broad range and then going up. MDD (maximum drawdown) is not as big as -20%.” wrote In part of a Twitter post.

Key retweeted from crypto’s popular account Il Capo, whose BTC long called for a price drop.

In a separate post, Ki Claimed That “most bitcoin cyclical indicators are saying is down”, and therefore shorting BTC at current levels was unfair.

“Not sure how long this range will take for consolidation. Opening a large short position here is not a good idea unless you think $BTC is going to zero,” he wrote.

Monitoring of resource content indicators, however, was the reason for over-risk avoidance.

“At this stage, no one can say with certainty whether BTC will hold this range or if it will again go to the $10K price level, but it would be foolish not to plan for that possibility,” a tweet argued,

“‘Never’ does not bode well in crypto. Plan accordingly.”

The Fed’s Balance Sheet Doesn’t Plan to “De-COVID”

In the latest macro news, rising pressure on the eurozone came as natural gas prices rose on a dwindling supply outlook.

RELATED: Bitcoin Hodler Data Indicates BTC Price Is ‘Really Close’ to Bottom – Analyst

Meanwhile, in the United States, Powell made new comments on the Fed’s monetary tightening policy.

Reduction in the central bank’s balance sheet, he said in the comments informed of By media sources at the time of writing, there are now plans to cut up to $3 trillion from asset purchases of just $9 trillion.

Since February 2020, the Fed’s balance sheet has grown by $4.8 trillion, meaning that even after the cuts, it will still exceed its pre-pandemic levels.

Federal Reserve Balance Sheet Chart (screenshot). Source: Federal Reserve

Meanwhile, the balance sheet of the European Central Bank, Beat Fresh all-time high this week despite high inflation,

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