- Bitcoin price drops under immense US dollar pressure and risk-off sentiment.
- BTC price negative outlook looms as a broad Bloomberg survey sees 90% of participants projecting $10,000 by next quarter.
- Bearish pressure on cryptocurrencies is increasing as big geographical blocs are slashing their investments in crypto.
Bitcoin (BTC) price gets battered again and sees bulls handing over the $20,000 marker to the bears. Not only is the current macroeconomic background unchanged, but it also becomes even worse with more lockdowns in China, the energy crunch in Europe and continuing inflation in the US, while the job market remains tight with rising wages. Additionally, a dent was given to the credibility of Bitcoin as a Bloomberg survey on Monday projected $10,000 amongst institutional and professional traders, meaning more pain to come for the already battered Bitcoin price action.
BTC price has a 90% chance of dropping to $10,000
Bitcoin price risks losing even more ground as the whole cryptocurrency family faces a head-hurricane instead of headwinds. With the current macroeconomic backdrop becoming grimmer by the day, the fresh lockdowns in China and the energy crunch in Europe are spelling even more trouble for traders and households. That means less disposable income from those families to allocate towards cryptocurrencies, drying up the investor inflow and much-needed cash to pump BTC price action higher.
BTC price is set to drop another leg in tandem with the EUR/USD pair, which is breaching parity as the US dollar strength is pressing on. Expect to see bulls being pushed against $19,036, with an almost certainty that the level will not hold. Instead, look for another leg lower towards $16,020, which means another 15% decline.
BTC/USD Daily chart
On the other hand, a bounce of the $19,036 would do the trick for a BTC price return towards $21,969 and hold a nice 16% gain in a range trade. The reasoning behind it comes from the Relative Strength Index (RSI), that is trading very close to being oversold. With that small drop lower, the Bitcoin market could see sellers closing their positions to take profit, opening room for a rebound. A pop even towards $23,000 could be possible if this goes in tandem with the equity markets rallying and the VIX dropping.
