Choose country & language:

Bitcoin bounces back to the $20,000 level

Home >  Daily Market Digest >  Bitcoin bounces back to the $20,000 level

Written by:
Myrsini Giannouli

15 July 2022
Share the article

Cryptocurrencies were volatile on Thursday, retreating early in the day, but rallying later on. In the past few weeks risk sentiment has been uncertain, affecting crypto markets and stock markets. Stock markets were also volatile on Thursday, driven largely by US inflation data. Stock markets affect cryptocurrency prices, as crypto markets have been following stock market trends.

Bitcoin price fell below $20,000 early on Thursday but reclaimed the key $20,000 level later in the day. If Bitcoin price declines, support may be found at the $19,200 level and further down at the psychological level of $15,000, while resistance may be found near $21,800 and $23,000. 

Ethereum price also rose on Thursday, reaching $1,200. If Ethereum price declines, it may encounter support at the $1000 level, representing its lowest price since January 2021 and further down at the psychological level of $500, while resistance may be encountered at $1,280 and higher up at $2.000.

US PPI and Core PPI data were released on Thursday and, combined with Wednesday’s CPI data, paint a clear picture of the current inflation conditions in the US. On an annual basis, the PPI in June reached 11.3% showing that US consumer inflation is accelerating. Collectively, the CPI and PPI data indicate that US inflation continues to rise at an alarming rate, increasing the chances of a steep Fed rate hike this month.

Global recession fears are promoting a risk-aversion sentiment, pushing cryptocurrency prices down. An increasing number of major Central Banks are moving towards a tighter fiscal policy to tame soaring inflation rates. A Fed rate hike of at least 75 bps this month is priced in by markets, putting pressure on crypto markets. Other major Central Banks are also tightening their monetary policy, with the Bank of Canada hiking by 100 base points on Wednesday and the ECB is expected to raise its interest rate by 25 bps next week. Stalling economic growth combined with fiscal tightening gives rise to fears of recession, promoting a risk-aversion sentiment and putting pressure on cryptocurrencies.

On the other hand, many market participants are seeking opportunities to buy cryptocurrencies at low prices, with the expectation that they have reached the bottom. Bitcoin whales are buying the dip for major cryptocurrencies, preventing crypto markets from crashing completely. 

BTC/USD 1h Chart

BTCUSD 1hr chart


ETH/USD 1h Chart

ETHUSD 1hr chart

The content provided in this material and/or any other material that this content is referred to, whether it comes from a third party or not, is for information purposes only and shall not be considered as a recommendation and/or investment advice and/or investment research and/or suggestions for performing any actions with financial products or instruments, or to participate in any particular trading strategy and cannot guarantee any profits. Past performance does not constitute a reliable indicator of future results. TopFX does not represent that the material provided here is accurate, current, or complete and therefore shouldn't be relied upon as such. This material does not take into account the reader's financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of TopFX, no reproduction or redistribution of the information provided herein is permitted.

Written by:
Myrsini Giannouli

Share the article:

Latest news

Dollar plummets in the aftermath of Silicon Valley collapse

Myrsini Giannouli 14 March 2023

Gold soars as investors turn toward safe-haven assets

Myrsini Giannouli 14 March 2023

Oil prices turbulent amidst market chaos

Myrsini Giannouli 14 March 2023

Crypto markets volatile after Silicon Valley Bank collapse

Myrsini Giannouli 14 March 2023

Why TopFX



industry presence
as a Liquidity Provider


from 0.0 pips

and reliable execution



client funds



customer support

Open your Live Account in 3 Steps
Step 1

Fill in the registration
form and click
"Create account".

Step 2

Once you are in the client secure area, please proceed with uploading your Proof of Identity and Proof of Residence.

Step 3

When your live account is approved, you can deposit funds and start trading on your chosen platform!