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Investing.com – The recently managed to rebound from its cycle low to the $25,000 area. However, Fed Chairman Jerome Powell’s speech at the Jackson Hole symposium again caused it to fall below the psychological $20,000 mark.
Some specialists are convinced that the is on the verge of falling below the 10,000 dollar mark, while the IMF estimates that the market for risky assets will experience a lean period of at least one to two years.
The founder and CEO of the cryptocurrency exchange FTX, Sam Bankman-Fried, however, believes that cryptocurrencies will soon start to rise again. In an interview with Bloomberg, he said that bitcoin’s falling price didn’t give him a headache at all. This decline is not due to a loss of interest or a failure of the technology, but simply a temporary change in macroeconomic conditions.
The fact that the billionaire has invested around a billion dollars in different crypto projects shows how convinced he is of the success of this sector.
For now, he doesn’t expect the sector to face a medium- or even long-term problem. This would only be the case if it fell 30 to 40 percent and bitcoin retreated below $10,000:
“Some pundits have said that bitcoin has probably bottomed out. Jerome Powell said on August 26 that the Federal Reserve wants to maintain its hawkish strategy and so this price pressure is already priced into the equity market. such negative developments, it can be seen that BTC’s decline has been rather small.In previous recessions, cryptocurrencies have fallen far more than tech stocks (NYSE:).This time around, bitcoin is showing a some resistance, which is a promising sign”.
The technical benchmarks of the bitcoin price
Bitcoin was able to reclaim the psychological mark of $20,000 as it rallied 0.99 percent in the past 24 hours to hit $20,093. The loss for the last seven days narrowed to -6.16 percent.
The cryptocurrency hit its daily low of $19,584 yesterday, leading to a rebound that even led to a daily closing price above the all-important $20,000 level. The door is therefore open for an extension of the upside move towards the 61.8 percent Fibo retracement of $20,523.
If bitcoin manages to sustainably overcome this resistance, the move may extend towards the 50 percent Fibo retracement of $21,417.
Only if the support at the 78.6 percent Fibo retracement of $19,251 gives way should we expect a test of the cycle low of $17,630.
By Marco Oehrl