Bitcoin price battles $23K as data says US in ‘technical recession’

Bitcoin (BTC), which lost more ground on July 28 Wall Street Open amid confusion about whether the United States was in a new recession, gained more.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Naysts predict a recession in the United States based on GDP print

Data from TradingView and Cointelegraph Markets Pro tracked BTC/USD as the pair tested $23,000 support following a jump in the Federal Reserve rate hike on Monday.

Momentum was able to benefit from U.S. GDP data that fell for the second quarter in succession, meeting all requirements for an economic recession.

The US economy is in technical recession, as GDP shrinks for the second quarter. After a 1.6% drop in the first three months, Q2 GDP declined at 0.9% annually. This was due to inventories and residential investment. pic.twitter.com/5cXb6uNyWT
— Holger Zschaepitz (@Schuldensuehner) July 28, 2022

The situation was not clear despite comments by Jerome Powell, Fed chair, and the White House. They both insisted that no recession was imminent or even predicted.

Powell claimed that the U.S. was not in recession but GDP numbers showed two consecutive quarters with negative growth. This means that the United States is currently in recession. Michael van de Poppe, a Cointelegraph contributor, summarized the strange status quo of the day.

U.S. Equities opened flat while Bitcoin was undecided about its overall trajectory after it reached $23,450 overnight.

Van de Poppe stated that traders in Bitcoin should not be influenced by the current economic situation.

“Now that we know the United States is in recession, does this mean we should change our trading strategies?” No! No!

Analyst Gareth Soloway, a trader, predicted that risk asset investors would face tough times in the future, as a deeper recession was likely due to Fed rate increases.

#GDP is down -0.9%. Markets sell at first, but then rally when investors love the #Dollar’s falling value and the possibility that the #FederalReserve cannot raise rates as aggressively. The market will continue to take risks until the Fed realizes that it can’t print the Fed out of a bad economic recession. #Bitcoin
— Gareth Soloway (@GarethSoloway) July 28, 2022

Material Indicators, an on-chain analytics resource, shared his perspective. They also warned that the worst was yet to come “at a macrolevel.”

Anyone who believed that GDP numbers would be positive or that the @WhiteHouse’s release of a new definition for recession was an accident is delusional. There are signs of a recession. The BMR is still in place. The worst is yet to come at a macro level. pic.twitter.com/rv3M2bNZAf
— July 28, 2022 Material Indicators (@MI_Algos

Blockchain Backer, a popular analytics account, stated that “This is a recession in the United States.”

“This preliminary print is subject to revision. It will be reprinted two times.” However, the U.S. is currently in a recession.

Ethereum long target is above $4,000

The potential long-term opportunities for Bitcoin and Ether (ETH) were evident when we translated the macro mood onto crypto prices.

Related: Bitcoin bear market rally continues after BTC price rises to $23.4K

Crypto Chase was able to long BTC/USD at $22,300 despite it being below key moving averages (MA), such as the 200-week trendline at $25,800.

He told his followers, “I wouldn’t be surprised if this price void was made quickly in the following days.”

“I’ll be looking for acceptance above local liquidity in order to target $4080 This corresponds with BTC pushing up to 23.2-23.5K, (potentially long opp at 22.2.3K market gives). There are many things to keep an eye on.

The USD/ETH exchange rate jumped to $1,676 during the day. This is still above the 2018 record of $1,530, which was set after the rate hike announcement.

1 hour candle chart of ETH/USD (Binance). Source: TradingViewcom. You should do your research before making any investment or trading decision.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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