Bitcoin Battles $23,000 as Data Shows the U.S. Is in a ‘Technical Recession.’

Bitcoin Battles $23,000 as Data Shows the U.S. Is in a ‘Technical Recession.'

Despite statements from the Fed and Congress, the United States GDP reading for Q2 fits the criteria of a recession. On the July 28 Wall Street open, Bitcoin (BTC) regained additional lost territory amid uncertainty about whether the United States has entered a new recession.

Analysts Call Recession for the United States on GDP Print

BTC/USD approached $23,000 for support after a run-up on the previous day’s Federal Reserve rate hike, according to data from Cointelegraph Markets Pro and TradingView. The momentum gained from U.S. GDP figures, which declined for the second quarter in a row, satisfies the criteria for an economic recession. However, the situation remained uncertain as a result of comments from both Fed Chair Jerome Powell and the White House, which asserted that no recession had arrived or was even expected.

Michaël van de Poppe, a Cointelegraph contributor, stated, “While Powell stated that the U.S. is not in a recession, numbers from GDP gave two consecutive quarters of negative growth, meaning that the United States is in a recession!” 

U.S. shares opened flat, as Bitcoin’s general trend remained uncertain after topping $23,450 overnight. Van de Poppe went on to say that, regardless of the status of the economy, Bitcoin traders should not act solely on the newest news.

Meanwhile, trader and analyst Gareth Soloway projected that risk asset investors would face tougher times ahead since a deeper recession was unavoidable due to Fed rate hikes.

Ethereum’s Long Target Above $4,000 Appears

When the macro mood was translated into crypto pricing, prospective long chances for Bitcoin and Ether became obvious (ETH). Longing BTC/USD was already conceivable for Crypto Chase at $22,300, despite being below important moving averages (M.A.) such as the 200-week trendline at $22,800.

“I wouldn’t be surprised if we quickly rendered this price void in the following days,” he informed his fans. I’ll be looking for acceptance over local liquidity to reach $4080, which corresponds with BTC pushing to 23.2-23.5K (possible long opportunity around 22.3K if the market gives). Lot to watch tbh.”

ETH/USD jumped to $1,676 on the day, remaining above the previous all-time high of $1,530 set in 2018 following the news of the rate hike.”

Featured Image: DepositPhotos @slavkosereda

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