Bitcoin price fails at $30,000 and things could get worse

Bitcoin price fails at $30,000 and things could get worse

Bitcoin price fails at $30,000 mark

On July 20, Bitcoin failed to defend the $30,000 mark after trading opened on Wall Street. According to data from Cointelegraph Markets Pro and TradingView, Bitcoin fell back lower as it reached the 21-day simple moving average (SMA). The SMA at $30,400 proved to be an insurmountable hurdle and erased the previous daily gain.

Experts warn of further downward trend

Expert Michaël van de Poppe warns that Bitcoin could potentially go even further downwards. He said: “We are not getting past the sticking point, so it appears that Bitcoin is heading back to recent lows for now.” Trader Daan Crypto Trades also believes that rising open interest will cause new volatility in the coming days.

Analysis and forecasts

Analysts at Material Indicators emphasize the importance of the 21-day SMA and fear that Bitcoin may have already reached the peak of its recent climb. They say the bulls need to rally to have a chance of overcoming this hurdle. The Bitcoin order book on Binance confirms a lack of demand below $30,000.

US dollar on the rise

On July 20, macroeconomic data showed that tech stocks are on the rise again and unemployment rates in the US are falling. As a result, the US dollar index (DXY) was able to climb to almost 101 points for the first time in several days. This could have an impact on the Bitcoin price, as there has been an inverse correlation between the US dollar and the Bitcoin price.

Macroeconomic considerations are important

Macroeconomic considerations are particularly interesting for Bitcoin because there is an interaction between the US dollar and the Bitcoin price. The current developments in the US dollar could therefore have an impact on the further development of the Bitcoin price. Experts warn of a possible further downtrend and recommend Bitcoin investors to be cautious.