Originally published on: August 28, 2022
Bitcoin is on track to record its lowest monthly close since 2020 as the price of BTC struggles to stay above $20,000. Recent data from Cointelegraph Markets Pro and TradingView indicates that BTC/USD is hovering around the $20,000 mark, with the monthly candle set to close soon.
Despite attempts by bulls to regain control, Bitcoin has failed to make significant gains over the weekend. With the price currently at around $19,900, it is trading below June’s closing price, raising concerns among investors.
The recent downturn in Bitcoin’s price can be attributed to comments made by Jerome Powell, Chair of the United States Federal Reserve, at the annual Jackson Hole economic symposium. Powell’s hawkish stance on key rate hikes sent shockwaves through the equities markets, resulting in a combined loss of $1.25 trillion in US stocks.
While some buyers have expressed interest in purchasing Bitcoin below $20,000, many anticipate further declines in the near future. Traders like Anbessa are considering different scenarios, including a breakdown to $16,000-$17,000, before a potential bullish reversal can occur.
On-chain data suggests a ray of hope for Bitcoin hodlers, as the proportion of BTC supply in profit is approaching levels seen at previous market bottoms. Despite the current challenges, hodlers continue to store their Bitcoin with increasing conviction, indicating a long-term bullish outlook.
As the market remains unpredictable, it is essential for investors to conduct thorough research and stay informed before making any investment decisions. Subscribe to our Markets Outlook newsletter for weekly insights to navigate the ever-changing crypto landscape.
