Bitcoin price: BTC struggles to stay afloat amid reverse currency war
- Crypto analyst who called the May 2021 Bitcoin collapse believes BTC is in the buy zone despite the macroeconomic outlook.
- Bitcoin’s Moving Average Convergence Divergence (MACD) looks bullish for optimal BTC buying.
- Analysts believe Bitcoin price will break out of its downtrend, eyeing the $23,550 level.
Amidst a brewing reverse currency war analysts like “Dave the Wave” advised traders to accumulate Bitcoin, in its buying zone. Analysts continue to retain a bullish outlook on the asset.
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Reverse currency war is brewing, best time to buy Bitcoin?
While currency wars flare up during tumultuous economic times, they have a significant impact on Bitcoin’s price trend. BTC and cryptocurrencies are riskier assets and investors have typically pulled out capital from such investments amidst economic uncertainty.
In June 2022, “reverse currency wars” became a reality. Goldman Sachs currency team told clients that Swiss National Bank’s shock interest rate rise confirmed their bullish view on the Franc and emerged as the “strongest evidence yet of reverse currency wars.” Therefore, a reverse currency war is brewing as a side effect of steps taken by central banks to fight inflation.
Despite investors sentiment has worsened, there is a sustained demand for Bitcoin among traders. Ebrahim Rahbari, Citi strategist, believes that over tightening around the world is a deeply disturbing prospect for global markets and “reverse currency wars are strongly bearish for risk assets.”
In contrast to Rahbari’s view, Griffin Ardem, a volatility trader from crypto asset-management firm Blofin told CoinDesk,
Even if central banks tighten monetary policy further, the situation will not worsen more, for the current performance of crypto assets is terrible enough.
An analyst who predicted the May 2021 decline in Bitcoin price believes BTC is in the buying zone and it is the ideal time to buy the asset.
Analyst argues Bitcoin is in the buying zone
Dave the Wave, a leading crypto educator and analyst had accurately predicted the May 2021 crash of Bitcoin. Dave told his 123,600 Twitter followers that Bitcoin is in an extended sideways range and it is in the “buying zone.”
BTC-USD price chart
The analyst notes that Bitcoin’s monthly Moving Average Convergence Divergence (MACD) looks bullish. Dave the Wave was quoted as saying:
The monthly MACD did wonders for predicting the top [loss of momentum/ blue arrow]. Histogram is now as over-extended as previously… and on a similar time-range. Bullish [for optimal buying as opposed to buying the top].
Bitcoin price is ready to break out of its downtrend
El Crypto Prof, a pseudonymous crypto analyst, noted that at the last FOMC-meeting Bitcoin broke out of its month-long descending broadening wedge-pattern. Therefore, it is likely that the asset continues its uptrend, a copy of the DBW strategy.
The analyst believes Bitcoin price is ready to hit the $23,550 target if the pattern repeats itself.
BTC-USD price chart
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
