Will Bitcoin Tank Following The Charles Schwab Indicator? Do BTC Investors Need To Worry?
The crypto market is giving investors no hope of recovery as the price of Bitcoin returns from its recent gain. In the meantime, futures trading remains the best way to gain from the crypto ecosystem.
Experts in the crypto world revealed that the current market situation results from several macroeconomic factors. These factors include the ongoing war between Ukraine and Russia and inflation. In addition, governments’ expenses have also increased since the break of the Covid-19 up to now.
Another notable factor is the interest rate hikes of the Fed and European Central Bank (ECB). Unfortunately, for now, only imagination can speak for most crypto investors.
Charles Schwab’s Affect On Bitcoin Price
Bitcoin has witnessed some gains in the past few days, which looked like a good sign for a green market. But in the last 24 hours, it dropped again by 1.39%. Bitcoin currently trades at $ 19,215.63 at the time of writing.
Bitcoin might slide below $ 19,000 l BTCUSDT on Tradingview.com
According to Charles Schwab, this might be the beginning of another dip in the crypto market due to the anticipated recession. As a result, he warns investors that they should prepare for another bearish movement in the crypto market.
Possibility of The Recession
Charles Schwab’s Chief Global Investment Strategist, Jeffery Kleintop, revealed the possibility of the predicted recession. He stated that a significant global economic indicator has dropped to a critical level.
He explained that the OECD leading indicator is currently at a dangerous area, below 99. This is a clear indication of a global recession. He pointed to some past instances when the index dropped below this territory.
According to him, the global economic recession that took place in 2020 was a result of Covid-19. His instances dated far back to mid-1970 and 1974, late 1981 and 1990, and early 2002 and 2008.
The leading indicator revealed significant unsteady business activity and a shift in the broader economy. The present level of the OECD indicator also shows that the consumer confidence index is worse than some past events. These include the subprime mortgage crisis in 2008 and the global pandemic in 2020.
Some organizations, like the World Bank, have also predicted a recession in 2023. It stated that the expected recession is due to the hawkish policy of the European Central Bank and that of the Fed.
BTC Performance During Recession
There’s no confirmation regarding the possible movement of Bitcoin during the expected recession. However, chances are that it could appreciate as a result of quantitative easing. But this is only possible if the Fed pulls off a strategy to handle the demand slowdown.
On the other hand, it’s also possible for BTC to dip even further due to the recession. The main reason is that stock markets barely perform well during the recession, and Bitcoin is no exception.
Featured Image From Pixabay, Charts From Tradingview
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Terra Coin Price Balloons 30% – But Can LUNA Reach Higher Terrain?
Terra (LUNA) woke up to a good day on Wednesday as the token made an impressive 30% jump in its price on the way to tallying a high of $ 3.08.
- Terra accounted for 25.06% of the entire token holdings among the top 100 ETH whales
- LUNA price surged by 30% today and hit $ 3.08
- Bullish momentum is possible and trading price might reach $ 3.25
The crypto, though, immediately experienced price correction as it is trading at $ 2.69 at press time according to tracking from Coingecko.
Still, Terra is looking at a 5.5% increase for the past seven days and a higher jump of 7.4% for the past two weeks.
It is still miles away from its all-time high of $ 18.87 attained in March 28 of this year, losing 85.6% of that value.
The good news is that it is currently up by 77.6% of from its all-time low of $ 1.53 hit on August 29, 2022.
Terra Surges As It Flips Lido Staked ETH Tokens
According to online crypto information source WhaleStats, Terra became the top holding by dollars of the top 100 Ethereum whales, accounting for 25.06% of all token holdings.
In doing so, LUNA was able to edge out Lido staked ETH (stETH) tokens and even surpassed USDC and USDT holdings of the whales.
In total, Ethereum whales included in the top 100 held around $ 820 million worth of Terra digital coin.
The wormhole interoperability protocol asset was then leveraged by the Ethereum whales to exit liquidity, causing the unprecedented rally that pushed LUNA price to grow by 30%.
Terra also witnessed a 150% increase in its trading volumes for the past hours, contributing to the bullish rally the digital asset made.
Terra Price Action At A Glance
While the Terra coin price ballooned by 30%, it still remains to be seen if LUNA can reach higher terrain during this time when crypto market is looking at high level of uncertainties among market participants.
It can be recalled that during the period of September 10 to 26, there was a massive sell-off involving the altcoin, driving its price all the way down to the $ 2 psychological support marker.
This led to the formation of a pennant pattern for Terra, indicating a continuance of the bearish momentum it was in before this recent price surge.
But all is not lost for LUNA, as there is a slight chance that the token will break the overhead trendline. If that happens, just like today, Terra might end up in an upward trend, going as high as 20% to hit $ 3.25.
As for its intraday performance, the altcoin is in a bullish trend but volatility remains high.
Crypto total market cap at $ 853 billion on the daily chart | Featured image from CafeF, Source: TradingView.com Disclaimer: The analysis represents the author’s personal views and should not be construed as investment advice.
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