It would be ‘foolish’ to deny that the price of bitcoin can go below $10,000

Bitcoin (BTC) preserved the $20,000 level for another day on June 23, with projections for a further 20% drop continuing to emerge.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

Bitcoin below $10,000 is not impossible

Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair hovering just above the $20,000 mark in the 24 hours to time of writing.

As usual, the performance mirrored moves in US stock markets, which were flat on the day.

Statements from Federal Reserve Chairman Jerome Powell provided only brief volatility. Cointelegraph noted that Powell’s congressional testimony did not provide any new information regarding macro policy.

As such, crypto commentators clung to earlier claims: The outlook was uncertain, they said, but a further potential decline may only involve a trip to $16,000.

“Consolidating $BTC in a wide range and then going higher. MDD (maximum decline) is not as big as -20%”, wrote Ki Young Ju, CEO of on-chain analytics platform CryptoQuant, in part of a Twitter post.

Ki retweeted the analysis of the popular Il Capo of Crypto account, whose BTC shots had long predicted falling prices.

In a separate post, Ki he claimed that “most cyclical indicators for Bitcoin are saying the bottom” is set, and that selling BTC at current levels was therefore inadvisable.

“I’m not sure how long it will take to consolidate in this range. Opening a big short position here doesn’t sound like a good idea unless you think $BTC is going to zero”wrote.

However, for the Material Indicators monitoring resource, there was reason to be more risk averse.

“At this stage, no one can say for sure whether BTC will hold this range or go to sub-$10K price levels ever again, but it would be foolish not to have a plan for that possibility,” argued a tweet.

“‘Never’ doesn’t age well in crypto. Plan properly.”

The Federal Reserve does not plan to “take COVID” off the balance sheet

As for the new macroeconomic news, the increased pressure on the Eurozone came in the form of a rise in natural gas prices due to prospects of reduced supply.

In the United States, for his part, Powell made further comments on the Fed’s tightening policy.

The reduction of the balance sheet of the central bank, said in comments collected by the media at the time of writing, it now only anticipates cutting up to $3 trillion from its nearly $9 trillion of asset purchases.

Since February 2020, the Fed’s balance sheet has gained $4.8 trillion, meaning that even after reductions it will be above its pre-pandemic levels.

Federal Reserve balance sheet chart (screenshot). Source: Federal Reserve

The balance of the European Central Bank, for its part, has reached new record highs this week despite runaway inflation.

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