Bitcoin is still stuck in a tight range as it trades around $20,000 to $21,000. The cryptocurrency was rejected at major resistance levels and could re-test its yearly lows close to $17,000. Related Reading | TA: Ethereum Revisits Key Support, Can The Bulls Protect More Losses At the time of writing, BTC’s price trades at $20,600 with a 1.4% loss and a 7% profit in the last 24 hours and last week respectively. Bitcoin has been trending to the downside since late 2021 when the cryptocurrency reached an all-time high at $69,000. Since then, BTC’s price has lost over 60% of its value and could continue trending to the downside in the short term. However, former CEO at crypto exchange BitMEX Arthur Hayes claims a “Doom Loop” has begun in the macroeconomic arena. Via Twitter, Hayes shared the Euro (EUR) daily chart compared to the U.S. dollar. The European currency reached parity with its North American counterpart for the first time in 20 years. Similar to Bitcoin, the Euro has been trending to the downside since 2021 and could potentially extend its losses. This dropped was triggered by the Ukraine-Russia conflict, and by the increase in inflation forcing central banks around the world to take action by reducing their balance sheets or increasing their interest rates. The European Central Bank (ECB) has been unable to take an effective measure. Thus, contributing to the decline of its currency. This “Doom Loop” is part of Ha...
