This week, the crypto market remained attractive as Bitcoin and altcoins stretched their gradual uptrends. For now, the world’s leading crypto hover beyond a historical accumulation sign. However, the question remains, can BTC regain its status as an inflation hedge?
BTC Fights Back
The Biden administration revealed that the US entered a recession. The confirmation emerged after the Fed Reserve executed another 75 basis point rate hike early this week. Meanwhile, the economic conditions worsened after the nation’s GDP contracted for another quarter. Nevertheless, the crypto market regained more than $124 billion between July 26 and this publication.
Bitcoin capitalized on bullish cues within the broad market. It climbed from the 19K lows to $20K before surging to press time levels near $23,917.
The Trader Catch
Meanwhile, Bitcoin has two impending substantial developments. First and foremost, the bellwether crypto targets regaining the 23.6% Fib mark. Secondly, it eyes a market bottom escape. The gradual surges from June lows saw BTC growing sustainably to its current value area. Moreover, the FIB zone from June lows to April top placed Bitcoin’s next crucial stop around the $26K level.
The price hovers briefly beyond the 23.6% Fibonacci line, a critical move as its might offer the needed support for Bitcoin to extend its rally. Moreover, the crypto’s market value shows the latest rally allowed it to escape market bottoms, which Bitcoin hits amid highly undervalued conditions. Bitcoin enjoys a win after traversing the area for over a month, a development the crypto never saw in 28 months.
Therefore, the mentioned win worries about Bitcoin’s future as the broad market isn’t acting individually. BTC’s correlation with the stock market remains substantially high as S&P 500 and NASDAQ rallied this week. Hence, Bitcoin is yet to serve as an inflation hedge respite for the latest recovery. That makes BTC investors more vulnerable amid the deteriorating economic condition.
Bitcoin lacks enough momentum to annul bearish tendencies. Moreover, some analysts stated that the ongoing market revival had no legs, opening downtrend possibilities. It remains crucial to see upcoming price tendencies.
Stay tuned.