According to CoinsPaid Trader Vincent Pellizzari, Bitcoin will likely continue trading at low levels as long as the macroeconomic picture remains grim. BTC is trying its best to stay above the key $30,000 mark in June, but recent events point to a further downward trend.
“The only argument for an upward move is a technical bounce, otherwise I see a continuation of the current downtrend towards the $20,000 zone,” shared the trader.
Vincent says inflation figures are causing general concern in the cryptocurrency market. For example, Germany’s inflation rate has reached a 60-year high, forcing the European Central Bank to take a more hawkish stance in its monetary policy. Earlier this year, the U.S. Federal Reserve took a similar position, starting to raise interest rates, negatively impacting the crypto market. The Fed’s actions are a rough picture of what the market could face if the ECB pursues a similar strategy.
When asked what stance to take in such circumstances, Vincent Pellizzari answers: “Determining when the bottom will be reached is almost impossible, but finding levels to lean on for a subsequent bullish run seems the most sensible approach.”
