Bitcoin risks new lows as $20K looms amid dollar euro parity

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Bitcoin (BTC) surged towards $20,000 after Wall Street opened on July 11 amid fresh warnings that it is “ready for new lows”.

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

$20,300 can be seen as the next support zone

Data from Cointelegraph Markets Pro and TradingView shows that BTC/USD has failed to recover losses that immediately followed the weekly close at $20,850.

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The pair nevertheless closed its best week of gains since March, nevertheless it was suitable for reconciliation due to market uncertainty.

For on-chain analytics resource content indicators, the watch level was a trendline from June acting as support.

“BTC Dropped Below the 21-Year Moving Average After Sunday Close,” it added. wrote In a summary-like Twitter post with a heatmap of buying and selling interest on major exchange Binance.

“Firechart shows some bid liquidity in the close range, but this may not be enough. If the price breaks below the trend line, be prepared for new lows.”
BTC/USD order book data (Binance) with trend lines. Source: Content Indicator/Twitter

Others focused on the expected July 13 United States Consumer Price Index (CPI) data release, pointing to a decline in riskier assets, should June inflation be significantly higher than projections.

Blockware analyst Joe Burnett additionally highlighted the potential for miners, already facing tight margins, for BTC price action to surrender more strongly to beat its previous lows.

“Critical support is now around $20.3K. Holding and, if the market does, new highs,” said Cointelegraph contributor Michael van de Poppe. competition,

Hayes Sees the Beginning of the Fiat “Doom Loop”

Macro techs were hardly more optimistic. For Arthur Hayes, the former CEO of derivatives trading platform BitMEX, the confirmation was that at least the US dollar and euro were starting a “doom loop” to oblivion hitting parity.

RELATED: US inflation figures will be ‘messy’ – 5 things to know about bitcoin this week

Central banks will now have no choice but to adopt Yield Curve Control (YCC), which could lead to currency disincentives that could eventually top bitcoin as the new global standard — a prediction made earlier in a blog in April. was set out in the post.

“$1 = 1€. Forex depreciating against the dollar. And the US dollar is rapidly losing purchasing power (CPI estimate 8.8%),” PlanB, creator of the stock-to-flow bitcoin price model, couple,

“When money dies.. again.”

The US dollar index (DXY) continued its steady rise that day as the European gas crisis put pressure on the euro, nearing 108.2 – a new twenty-year high.

US Dollar Index (DXY) 1 Month Candle Chart. Source: TradingView

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