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Investing.com – The is still hovering in the $20,000 area as market tensions escalate again. Globally high inflation remains the dominant theme, as it is the starting point for monetary policy decisions by major central banks.
While a few weeks ago Fed officials had already raised the possibility of an interest rate hike above four percent, a level of five percent was mentioned for the first time this week. last.
The resulting strengthening dollar sends the euro down to its lowest level in 20 years. This should continue to fuel inflation in the Eurozone due to increasingly expensive imports, prompting the ECB to act.
Ultimately, this will have the effect of continuing to deprive high-risk investments like cryptocurrencies of capital. Although there has been talk several times in recent days about the formation of a floor for bitcoin, the risk of another fall continues to increase.
“Rich Dad Poor Dad” author Robert Kiyosaki warned of a global depression, in which millions of middle class people would be devoured by energy inflation. Until last week, Kiyosaki thought government bonds were a good place to stash his money during a crisis. But he changed his mind after hearing economist Harry Dent’s opinion on the situation. Meanwhile, Kiyosaki expects the biggest bond market crash since 1788.
Kiyosaki previously said in June that he had cash positions he would invest in bitcoin. But only when the crash is really here – at a BTC/USD price of $1,100.
Technical thresholds to watch on Bitcoin
Bitcoin is currently recording a gain of 0.21% at a price of $19,777, while the loss on a weekly basis is -0.26%.
Since the fall on August 26, the cryptocurrency has been consolidating its losses around the psychological mark of $20,000. On the upside, the 61.8 percent Fibo retracement of $20,523 offers immediate resistance.
Only if this resistance is breached at the daily close can an extension of the rally be expected towards the 50 percent Fibo retracement of $21.417.
As long as trading is taking place below the 61.8% Fibo retracement, there may be an acceleration of negative momentum towards the 78.6% Fibo retracement of $19,251 at any time. If this support fails to withstand downside pressure, focus shifts to a test of the cycle low of $17,630.
By Marco Oehrl