Will Bitcoin Break $10K? Here Are Details

Bitcoin (BTC) managed to protect $20,000 for another day. However, calls continue to come from analysts for another 20 percent decline. Here are the details…

Should Bitcoin investors open a short position?

The data shows that BTC/USD is currently trading hands at $21,031, up 1.6 percent. This reflects the movements in the US stock markets, which are flat during the day. Statements by Federal Reserve Chairman Jerome Powell provided only a brief volatility. AmkNews.com As we have reported, Powell’s Congressional statement did not provide any new insight into macro policy.

Therefore, crypto commentators have adhered to previous claims. They said the outlook was unclear. However, they think a potential new bearish sentiment could result in the sighting of $16,000. Ki Young Ju, CEO of on-chain analytics platform CryptoQuant, said in a Twitter post, “BTC consolidation is rising over a broad range. The maximum drop is not as big as 20 percent,” he said. Ki retweeted analysis by popular account Il Capo, which has long called for a price drop in BTC.

In a separate post, Ki claimed that “most Bitcoin cyclical indicators say the bottom.” That’s why he said that shorting BTC at current levels is wrong. He used the following expressions:

I’m not sure how long the consolidation will take in this range. Shorting a large position here is not a good idea unless you think BTC will go to zero.

It’s not impossible for Bitcoin to drop below $10,000

According to Material Indicators, which presented the data, there were more risk-averse reasons in the current situation. In a tweet, “At this stage, no one can say with certainty whether BTC will hold this range or fall below $10,000 again. But it would be foolish not to have a plan for this possibility.” He stated that the word “never” did not go well in the crypto space. He said investors should plan accordingly.

What does the macro news show?

Meanwhile, increasing pressure on the Eurozone came in the form of rising natural gas prices amid the waning supply outlook. In the US, Powell made new comments on the Fed’s monetary tightening policy. He made a statement about the central bank’s balance sheet reduction. He said he now plans to cut from around $9 trillion in asset purchases to just $3 trillion.

Since February 2020, the Fed’s balance sheet has gained $4.8 trillion. This means that the balance sheet will be higher than pre-pandemic levels, even after the reductions. Meanwhile, the European Central Bank’s balance sheet broke all-time records this week despite hyperinflation.

Bitfreedom: Bitcoin could drop to $14,000

Finally, another source says he is predicting a drop in BTC. Tracked by Bitfreedom Research, Bitcoin is down almost 80 percent from its all-time highs. According to the company, this is in case of repeating an 80 percent drop from the previous high of about $69,000 that Bitcoin touched last November; It shows that BTC could drop as low as $14,000 this year.

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Larry Brown

I graduated from Yale University, Department of Television. I have been a professional news writer for 3 years. I am continuing my career here by establishing amknews.com site 3 months ago.