Bitcoin (BTC) checked losses while United States stocks tumbled on June 22 as the Federal Reserve remained silent on monetary policy.
Powell keeps quiet on Fed move
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD was hovering near $20,500 at the Wall Street Open on June 22.
The pair went below the $20,000 mark overnight before recovering, which is still below the previous day’s high of $21,700.
As markets braced for last-minute surprises from Congressional testimony by Fed Chair Jerome Powell that day, it ultimately did not provide any new insight into the central bank’s approach to controlling inflation on a large scale.
“We anticipate that ongoing rate hikes will be appropriate; the pace of those changes will continue to depend on incoming data and the evolving outlook for the economy,” said a copy of Powell’s testimony released ahead of his appearance.
“We will make our decisions by meeting, and we will continue to communicate our thinking as clearly as possible.”
Both the S&P 500 and the Nasdaq Composite Index opened slightly lower after sharp gains the day before, providing similar non-volatile conditions for the crypto markets.
As Cointelegraph reported, the consensus among analysts still points to a further revaluation to lower levels, with $16,000 in the case of bitcoin particularly popular.
“Decreasing volume with a full impulse wave. Too long looking for an ABC pullback. I took a long time, but got off here as the structure was complete,” said popular Twitter account CryptoTony Explained About the overnight market setup.
His concerns about low volume on an upside move were shared by fellow trader and analyst Reckitt Capital, who urged Twitter followers not to put too much faith in the strength of the rally.
“The recent BTC rally has been very low in volume and seller-dominated,” he said. wrote,
“This is not what $BTC was experiencing at the bottom of a bear market.”
Report Finds Silver Lining in the Crypto Cloud
Meanwhile, looking on the bright side, trading firm QCP Capital revealed that it saw a bearish turnaround after bitcoin reclaimed $20,000 over the weekend.
RELATED: Bitcoin Miners Sold Their Entire May Harvest: Report
“On Saturday, support levels were broken as BTC fell to 17,567 and ETH 879. For BTC, this is a 75% drop from an all-time high (82% for ETH). The crypto credit crisis is in full swing,” it wrote Its latest market circular issued to Telegram channel subscribers.
“However, we were pleasantly surprised by the strong bounce off Sunday and this week’s lows, taking BTC above 20,000 and ETH above 1,100.”
Continuing, it explained that funding rates on the derivatives markets were now more stable and that selling pressure at the weekend’s low was “reducing more miners’ inventory”.
On the subject of macro, QCP highlighted the fall in oil prices as a positive move against inflationary pressures.
“At the same time, we remain cautious. Quarter-end fund redemptions are likely to put some pressure on prices as well as reveal more crypto insolvency,” it added.
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