Bitcoin (BTC), Investor Anxiety on Fear Headlines..."Prepare for a Sharp Drop Scenario"

▲ Bitcoin (BTC) drop/AI generated image

Rumors of a surprise interest rate hike in the U.S. and reports of delays in the U.S. cryptocurrency market structure bill are shaking the crypto market. However, a counter-argument has emerged that these are exaggerated headlines designed to provoke investor sentiment.

Dan Gambardello, host of the cryptocurrency YouTube channel Crypto Capital Venture, evaluated the two reports as “part of a manipulative tactic to sway the emotions of market participants” in a video uploaded on July 28 (local time). However, Gambardello stated, “There is also a possibility that interest rate hikes and delays in bill voting may actually occur, so we must prepare for such scenarios.”

The possibility of an interest rate hike by the U.S. Federal Reserve (Fed) reflected in the futures market jumped from 16% to 36%. Gambardello argued, “I believe we are closer to an interest rate cut than an interest rate hike,” claiming that if recent oil supply shocks weaken, the trend of slowing inflation will reappear. He also presented as evidence that a cryptocurrency bull market began when the Purchasing Managers' Index (PMI) exceeded 55, and the current index is just below the 55 mark.

Reports that the U.S. Senate might postpone the vote on the U.S. cryptocurrency market structure bill until next week, as it prioritizes Russian sanctions and federal confirmations, have also come under scrutiny. Gambardello countered that a plenary vote this week was not initially expected, and the possibility of it being processed next week still remains. He criticized the repeated use of the phrase ‘bill delay’ despite no new schedule changes, calling it “a headline designed to draw market participation.”

In technical analysis, the short-term downside risk of Bitcoin (BTC) was primarily cautioned. Gambardello analyzed that if Bitcoin completes an inverse head and shoulders pattern, it could aim for $75,000, but if volatility increases, it could test the support zone of $61,000 to $59,000. For Ethereum (ETH), he presented $1,750-$1,759, where the 50-day moving average is located, and $1,700, where the long-term trendline is situated, as key defense lines. On the upside, he identified the trendline below $2,000 and the 200-day moving average near $2,100 as key resistance zones.

Gambardello predicted that significant price volatility could continue over the next 24 hours and until August 3. He emphasized the need to prepare for both upside and downside movements without definitively stating the market direction, and to respond according to one's holdings and risk level.

[Article Key Summary]

-Gambardello evaluated rumors of a surprise interest rate hike and reports of delays in the U.S. cryptocurrency market structure bill as exaggerated headlines designed to stimulate investor sentiment.

-The probability of an interest rate hike jumped from 16% to 36%, but Gambardello put more weight on the possibility of an interest rate cut and slowing inflation.

-For Bitcoin, the $61,000-$59,000 range was presented as a key support level, and for Ethereum, the $1,750-$1,700 range.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*