Cryptocurrencies: Bitcoin Falls Below $20,000 For First Time Since July 14

Cryptocurrencies moved in line with global markets and retreated after Jerome Powell warned against premature policy easing, with Bitcoin dipping below the lows of the narrow range it has been trading in for the past two weeks.

Bitcoin lost as much as 3.4% to $19,947.32 on Saturday at 14:40 Singapore time, falling below $20,000 for the first time since July 14 and extending its decline this year to 57%. as reported by Bloomberg. In the last week it has traded in a range between this level and around $22,000. It is currently trading at $20,145.

“Powell’s admission that there will be pain before there is relief is rather hawkish,” said Josh Olsevich, head of research at digital asset fund manager Valkyrie Investments.

Ethereum slipped as much as 5.5% to $1,471.41. Solana and Avalanche were down 6.4% and 6.9%.

Even so, some analysts say the recent trading pattern presents a buying opportunity:

– CryptoQuant said in a report on Thursday: “The readings signal that price is in the accumulation zone, which historically is a market bottom formation and value investment.”

– “Friday’s breakout looks significant and bearish in the short term, but should align with buying opportunities through early September as cycles remain bullish and forecast higher prices through November 2022,” said Mark Newton, technical strategist at Fundstrat , in a note on Friday.

Powell, the chairman of the U.S. Federal Reserve, has signaled that the U.S. central bank is likely to continue raising interest rates and leave them elevated for some time to fight inflation, and pushed back on any notion that the Fed would reverse soon its course.

Low interest rates are seen as one of the catalysts to push investors into cryptocurrencies during the Covid lockdown.