More Downside, due to market-sentimentHello everyone, so looking at the weekly timeframe, the price of Bitcoin is still below the 200-moving day average. The stochastic RSI is still oversold, meaning that I am still bearish on Bitcoin. On the other hand, today is July 1st, a brand new month for Bitcoin. Also, it's now Quarter 3 for the economy. Fears of recession and inflation are still looming, as we still see the stock market and crypto reacting to the market sentiment. Yesterday, we found out that inflation still went up for the Eurozone. This means that inflation will likely go up for June's CPI data.
I think we are already in a recession since the Federal Reserve of Atlanta released their Quarter 2 "GDPNow" forecast ending at a negative 1% decline. This week, we also had the announcement that Quarter 1 GDP was revised lower to -1.6%, compared to the original GDP data of -1.5%. Now that the FED of Atlanta has their Q2 GDPnow at a negative, that means we are in a recession right now. We would have to wait for an official announcement from the U.S Bureau of Economic Analysis. We are already seeing signs of the economy slowing down as many tech companies are starting to lay off workers. Retail is now seeing less traffic in their store as their revenue has been going down. Now, what does this all relate to Bitcoin? It relates to Bitcoin because it will have a negative reaction once the official announcement of a recession is out, while inflation persists. That's why I still expect more downside to the $16,000- $14,500 levels as it is going to draw investors away to save money through a recession. Once we fall more, expect alt coins to fall even further.
May I be wrong on this? Absolutely! This is not financial advise, so please conduct your own research. My reasoning is all due to global market sentiment; which includes inflation, supply chain, and recessionary fears.
