Toward US$25,000: Bitcoin falls further as analysts see cryptocurrency tests bearish support

By Toni Sciarretta

Bitcoin and Ether retreated on Thursday amid doubts about a deal to raise the US debt ceiling and pressure from the expiration of cryptocurrency options on Friday.

With pessimism, chartist analysts see the possibility of Bitcoin testing the US$25,000 range before moving back toward US$30,000.

Ayron Ferreira, a chief analyst at Titanium, believes that an agreement in the US Congress will only occur at the final moment, which should keep the market tension in the coming days.

“It is a serious issue, so the market has reacted accordingly.”

“A default would bring serious consequences for the US, such as difficulty in financing itself and an even greater rise in interest rates,” he said.

For André Franco, head of Research at MB, the most likely thing now is that Bitcoin will go to a next stop near US$25,000.

“With options maturities approaching, it is quite likely that today and tomorrow will be quite volatile days in the market,” he said.

Near 9:05 am ET, bitcoin was down 1.9% in the past 24 hours, trading at US$26,214.30, while the Ether retreated 1.7% to $1,783.61, according to data from CoinGecko.

The combined market value of all cryptocurrencies worldwide was US$1.15 trillion.

In Brazilian reais, Bitcoin was trading with losses of 2.14% at R$130,728.57, while the Ether had a devaluation of 1.85% at R$8,901.37, according to figures provided by MB.

Orlando Telles, the founder of Orlando on Crypto, highlights that monetary policy follows a turning point in the US, contributing to pessimism in the risk markets.

Telles also comments that another topic present in the minutes of the last meeting, released yesterday, that worries the market is the opinion expressed that the US will probably have a mild recession by the end of 2023.

“All these points have negatively impacted the crypto market, with a high correlation between cryptocurrencies and the US equity markets.”

With information from Valor

News Brazil, English news Brazil, Cryptocurrency

LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.