Floor reached? The price of Bitcoin (BTC) records new significant increases, after the announcements of the American Federal Reserve (FED) and the publication of data, which show an economy at half mast.
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Bitcoin price in recession green
Bitcoin price makes a foray above $24,000 today, July 28, 2022, and closes the day in the green at $23,920with a daily gain of about 5%.
Bitcoin appears to be benefiting from the release of US GDP data, which is down for the second straight quarter. The conditions are therefore now met, to evoke the idea of a recession in the United Statesalthough the Fed Chairman and the White House claim otherwise.
At the macroeconomic level, some observers believe that the worst is yet to come. The increases in key rates by the FED could lead to a deeper economic recession over the next few quarters.
How will investors react to Bitcoin, in the face of this risk of a worsening of the current recession? Or should we avoid giving importance to this recession, which “does not represent no variables you can work with “, as’noted the trader Michaël van de Poppe?
RSI history: is the bottom over?
Bitcoin has returned to a level just over $1,000, above the 200-week moving average. Are the markets witnessing another fake-breakout, or to a flip of this level in major support that will support a real bullish recovery?
The graph shared by the TechDev analyst may provide some answers on the current situation. It shows the price fluctuations of Bitcoin over two weeks, for about 11 years. The analyst has paralleled this Bitcoin price variation curve with a graph of RSI fluctuations (14, close, SMA, 14, 2) inside a channel.
The RSI has touched the bottom of the channel for a few weeks, a situation which historically seems correspond to the bottom of a bearish phase of a cycle.
If history does indeed repeat itself for this cycle, either:
- the markets are therefore currently witnessing the beginning of a bullish recovery;
- they will be entitled to further declines in the coming days, before seeing this long-awaited sustainable recovery.
The FED thus continues to boost the price of Bitcoin, but the markets must wait for confirmation before being able to announce the start of a structural rise over several months.
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