This Expert Says Bitcoin Price Down Is Not Because BTC Loses $19,000

This Expert Says Bitcoin Price Down Is Not Because BTC Loses ,000

Bitcoin price is trying to recover on lower time frames as the cryptocurrency struggles to surpass $19,000 and prevent further declines. Selling pressure has been relentless over the past 24 hours and has brought market sentiment back into the fear zone.

Over the next week, the crypto space will go through a major phase as Ethereum completes its transition to Proof-of-Stake (PoS) consensus. Check out our analysis of the potential impact on the price of Ethereum and what to expect for the crypto market.

At the time of writing, Bitcoin is trading at $18,900 with a 5% loss in the last day and seven days in a row. The rest of the cryptocurrency market is maintaining some of its gains from the past weeks, but the bullish momentum in Ethereum (ETH) and Cardano (ADA) may fade.

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BTC price is moving sideways on the 4 hour chart. source: BTCUSDT TradingView

Why should the bitcoin price recover these levels

According to cryptocurrency analyst Justin Bennett, bitcoin price was able to hold around a critical support area as selling pressure intensified yesterday. The cryptocurrency was moving in a tight range and flirting with the north of $20,000 levels, but in the end the bears won the round which led to a bearish price action.

As seen below, Bitcoin has been rebounding from yesterday’s low of around $18,600 since June 2022. At that time, the cryptocurrency market was dropping heavily and was on track for a long period of consolidation on higher time frames.

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BTC price bounces off important support. Source: Justin Bennett via Twitter

This consolidation continued as the bulls managed to defend the current levels of bitcoin prices, but the cryptocurrency stands in a critical area. Bennett He said Here are the levels that Bitcoin price should demand to prevent further losses:

The #Bitcoin chart is straightforward. The $19,000 area is support. Below that on a daily close basis, we would probably see at least $17,600, if not much lower. BTC bulls need to reclaim $19,700 to see $20,500 and possibly $21,400. I still don’t think the bottom is inside.

The cryptocurrency has so far managed to regain some ground, but the bulls must push the price to around $19,000 on a daily close or risk turning this support area into resistance.

Inflation Could Take Another Blow, Will Bitcoin Rebound?

In the next few days, the US will release its August Consumer Price Index (CPI), a measure used to measure inflation in the dollar. The July CPI reading hinted at a possible slowdown in inflation, and the upcoming results of the Federal Reserve (Fed) may provide some scope to ease its monetary policy.

According to Bloomberg Intelligence Mike McGlone, a drop in the price of crude oil, which is an important component when measuring the CPI, can drive up bitcoin prices. In the longer term, the expert believes that today’s macroeconomic outlook will lead the world to “enter a deflationary recession.”

This could cause major changes to the legacy financial system, cementing Bitcoin’s role as one of the world’s most important stores of value alongside US gold and bonds. McGlone He said:

This scenario is gaining momentum at the beginning of September as evidenced by the decline in commodities and global GDP and the growing expectations of interest rate hikes.

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