Bitcoin Recovers Near $24K as the US Falls into Recession
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The US Bureau of Economic Analysis data showed that the world’s largest economy contracted by a 0.9% annualized rate after suffering a 1.6% decline in Q1. This data holds a pivotal sway on the markets as it reveals the effect of the four-decade high inflation on the economy and could introduce fresh volatility into the market.
High-stakes economic data releases such as inflation and GDP figures have become more critical to market momentum in recent months as the Federal Reserve discontinued forward guidance on Wednesday and made future policy decisions data-dependent. Forward guidance, according to the US Fed’s definition, is “a tool that central banks use to provide communication to the public about the likely future course of monetary policy.”
In the meantime, risk assets, such as Bitcoin, could post an aggressive spike in the coming hours after the US GDP data release shows that the global giant has entered a technical recession. This report would strengthen expectations of slower interest rate increases in the coming months and eventually ease constraints on the money supply.
Key Bitcoin Levels to Watch — July 28
Bitcoin has posted an aggressive rebound over the past two days after dropping to the mid-$20K zone. The latest bullish momentum was sponsored by a worse-than-expected US GDP report, suggesting that the US Fed could take its leg off the monetary tightening pedal. This move could mean the crypto winter might come to an end soon.
The benchmark cryptocurrency appears poised to retake the $25K level after six weeks as bulls resurface.
Meanwhile, my resistance levels are at $24,000, $25,000, and $26,000, and my key support levels are at $23,000, $22,000, and $21,000.
Total Market Capitalization: $1.10 trillion
Bitcoin Market Capitalization: $454.9 billion
Bitcoin Dominance: 41.4%
Market Rank: #1
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