Support is thin on the ground, analysts and traders warn, as ex-BitMEX CEO Arthur Hayes heralds the start of the fiat currency “doom loop” with USD/EUR parity.
Bitcoin (BTC) headed for $20,000 after the July 11 Wall Street open amid fresh warnings to “prepare for new lows.”
$20,300 eyed as next support zone to hold
The pair had nonetheless locked in its best week’s gains since March, these nonetheless apt to unravel as market uncertainty lingered.
For on-chain analytics resource Material Indicators, the level to watch was a trendline acting as support since June.
“BTC fell back below the 21-ay Moving Average after the Sunday close,” it wrote in a summation-like Twitter post alongside a heatmap of buy and sell interest on major exchange Binance.
“FireCharts shows some bid liquidity in close range, but it may not be enough. If price falls below the trend line, prepare for new lows.”
Others predictably focused on the July 13 United States Consumer Price Index (CPI) data release, this tipped to spark downside across risk assets should June’s inflation significantly outpace estimates.
Blockware analyst Joe Burnett additionally highlighted the potential for miners, already facing tight margins, to capitulate more heavily should BTC price action beat its prior lows.
32 days since the start of Bitcoin's miner capitulation.
If CPI comes in hot, US equities make new lows, and Bitcoin drops sharply below $20k, get ready for the next wave of capitulations. pic.twitter.com/pKfchsILmf
— Joe Burnett ()³ (@IIICapital) July 11, 2022
“Crucial support now around $20.3K. Has to hold and, if the markets does, new highs pos,” Cointelegraph contributor Michaël van de Poppe nonetheless countered.
Hayes sees start of fiat “doom loop”
Macro takes were hardly any more optimistic. For Arthur Hayes, former CEO of derivatives trading platform BitMEX, confirmation was in that at least the U.S. dollar and the euro were beginning a “doom loop” to oblivion thanks to hitting parity.
Central banks would now have no option but to adopt yield curve control (YCC), sparking the disintegration of the currency which could ultimately leave Bitcoin on top as the new global standard — a prediction previously laid out in a blog post in April.
— Arthur Hayes (@CryptoHayes) July 11, 2022
“$1 = 1€. Foreign currencies crashing against the dollar. And US dollar losing purchasing power fast (CPI est. 8.8%),” PlanB, creator of the Stock-to-Flow Bitcoin price models, added.
“When money dies .. again.”
The U.S. dollar index (DXY) continued its unrelenting surge higher on the day as the European gas crisis pressured the euro, hitting nearly 108.2 — a new twenty-year high.
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