Bitcoin below $20,000 after Jackson Hole caution

Synopsis

“Money is flowing out of risky assets. Crypto followed the sharp adjustment of the US stock market,” after Powell’s remarks, said Cici Lu, CEO at Venn Link Partners. “Markets didn’t like what he had to say and Bitcoin is resuming as a high-beta asset.”

FILE PHOTO: Representations of cryptocurrency Bitcoin are seen in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration/File PhotoBitcoin fell below $20,000 on Sunday as part of a wider cryptocurrency-market retreat, amid concern about the Federal Reserve’s rate-hike path.

The largest token was trading at 19,999 at 22.30 IST Sunday. That’s after a two-day drop of 7.6%, moving in tandem with US stocks on Friday after Fed Chair Jerome Powell’s speech at the Jackson Hole conference. The wider crypto market retreated Sunday, with the MVIS CryptoCompare Digital Assets 100 Index dropping 1% in its fourth straight day of declines.

“Money is flowing out of risky assets. Crypto followed the sharp adjustment of the US stock market,” after Powell’s remarks, said Cici Lu, CEO at Venn Link Partners. “Markets didn’t like what he had to say and Bitcoin is resuming as a high-beta asset.”

The $20,000 level acted as support for Bitcoin when it hit lows in recent months, but the cryptocurrency had worked its way higher in recent weeks. Before Saturday, it hadn’t been below $20,000 since July 14, and had even crossed above $25,000 earlier in August.

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View Details »Numerous strategists have flagged $20,000 as a key point for Bitcoin, though levels of support could lie lower as well.

Fairlead Strategies’ Katie Stockton sees long-term support in the $18,300 to $19,500 area. Fundstrat strategist Mark Newton has flagged some key areas in the $19,000 range, with a “real area of importance” around $17,500, near the June lows and which would allow for a 100% alternate wave projection of the most recent decline from mid-August, he said in a note Friday.

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    Updated: 08/29/2022 — 07:00