Bitcoin price lost a key support level on Tuesday, dropping below $19,700 amid the overall market environment as stock indices plummet and the euro approaches parity with the US dollar.
The price charts show that Bitcoin saw resistance at $21,800 last week.
BTC held some support at $20,500 over the weekend and dropped to $19,700 in the early Asian hours today.
Technical analysis shows that Bitcoin could fall as low as $18,700, which it reached earlier this month.
On the other hand, a recovery from current levels could allow Bitcoin to climb as high as $21,300 in the coming weeks.
Bitcoin Price Drops After Temasek Holdings Warns of a Regression in Financial Markets
The declines came as Singapore state-owned Temasek Holdings, which manages more than $287 billion in assets, warned of further downturns in financial markets, citing the possibility of a “recession in advanced markets”.
Temasek said he predicts a “mild recession” in the US next year, China faces “challenges” and the global economy is in a “fragile state”.
“Rising inflation, rising commodity prices and severe supply chain bottlenecks have revealed more crack lines in the global market,” the statement said.
The euro approached the parity by falling to $ 1.0002, the lowest level of the last 20 years against the dollar.
The weakness stemmed from concerns that an energy crisis stemming from Russia’s invasion of Ukraine would push the region into recession, while expectations for faster rate hikes by the FED supported the dollar.
In a statement on Telegram on Tuesday, QCP Capital traders said:
“Mt. The news about Gox releasing around 140,000 BTC in August strengthened our view that upside movement will be limited in the near term.”
*Not investment advice.