Analyst suggests The Fed could push Bitcoin to $20,000
Popular cryptocurrency YouTuber CryptoBanter believes Bitcoin (BTC) could fall to $20,000 in the near future amid ongoing economic uncertainty.
In his Oct. 12 livestream, CryptoBanter analyzed the latest price action and macroeconomic factors impacting Bitcoin. He believes the leading cryptocurrency remains at risk of further declines after breaking below several key support levels.
If Bitcoin starts to break and close below that $25,000 level I’ll tell you almost the same thing over here, and give you a different visual perspective. You can see prices operating within the top side of this range over here. We’re looking for this to flip into a new range, meaning strong support should be between $25,000 and upside resistance around that $34,000 mark.
CryptoBanter
With inflation stubbornly high, CryptoBanter thinks the Federal Reserve will continue raising interest rates. This could spark a recession and lead risk assets like Bitcoin significantly lower.
If [consumer price index (CPI)] comes in at 3.7% it will now be the third consecutive monthly increase in that inflation. So it’s showing that inflation is sticky and continuing to tick on up. […] We know that generally when there are these geopolitical tensions which we have currently in the in the world right now, then usually oil prices rise and consequently inflation starts to become sticky.
CryptoBanter
In addition to the macroeconomic headwinds, on-chain data suggests miners are selling large amounts of Bitcoin. This additional sell pressure makes Bitcoin more vulnerable according to CryptoBanter.
However, he doesn’t expect Bitcoin to crash without support. The key support area he is watching is around $20,000, which lines up with the high block capital liquidation range.
If that breaks, of course everything starts to change significantly and we have to look for that pre-halving dump theory to come into action. […] For now the trend is still intact […] if there’s higher low holds, then you’re looking for the next push up to mount towards that 29k level which is again going to still be major resistance.
CryptoBanter
While cautious in the short-term, CryptoBanter remains bullish on Bitcoin in the long run. He expects the cryptocurrency to break its all-time high of around $69,000 sometime between September 2024 and March 2025 based on historical price cycle data.
