Analysts continue to target $16,000 as a downside target, so investors must have a contingency plan in place.
On June 23, Bitcoin (BTC) saved $20,000 for another day, with calls for another 20% drop still circulating.
Bitcoin under $10,000 is not unattainable.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD fluctuating just above $20,000 in the 24 hours leading up to the time of writing.
As usual, the behavior mirrored movements in the US equity markets, which remained flat on the day.
Federal Reserve Chair Jerome Powell's remarks provided only brief volatility. Powell's congressional testimony, according to Cointelegraph, provided no new information on macroeconomic policy.
As a result, crypto commentators stuck to previous assertions: the outlook was uncertain, but a potential new drawdown might only involve a trip to $16,000.
"$BTC is consolidating in a broad range and then rising. MDD (maximum drawdown) is not as large as -20 p "Ki Young Ju, CEO of on-chain analytics platform CryptoQuant, wrote in part on Twitter.
Ki retweeted analysis from popular account Il Capo of Crypto, whose BTC forecasts have long predicted price declines.
Ki claimed in a separate post that "most Bitcoin cyclic indicators are saying the bottom" is in, and that shorting BTC at current levels is therefore risky.
Most #Bitcoin cyclic indicators are saying the bottom.
— Ki Young Ju (@ki_young_ju) June 23, 2022
Not sure how long it would take for consolidation in this range tho. Opening a big short position here sounds not a good idea unless you think that $BTC is going to zero.
Live Dashboard 👇https://t.co/HyTvRA6QrW pic.twitter.com/HYbjliokIq
"I'm not sure how long it would take for this range to consolidate. Opening a large short position here does not seem like a good idea unless you believe $BTC will fall to zero "He wrote something.
However, there was reason to be more risk averse when monitoring resource Material Indicators.
"At this point, nobody can say with certainty whether BTC will hold this range or if it will ever return to sub-$10,000 price levels, but it would be foolish not to plan for that possibility," a tweet argued.
At this stage, nobody can say with certainty whether #BTC will hold this range or if it will go to sub $10k price levels ever again, but it would be foolish not to have a plan for that possibility. "Never" doesn't age well in #crypto. Plan accordingly. https://t.co/iCsO8yQgDB pic.twitter.com/8WoLYJQqvG
— Material Indicators (@MI_Algos) June 22, 2022
"'Never' doesn't age well in crypto. Plan accordingly."
The Fed has no plans to "de-COVID" its balance sheet.
In new macro news, rising natural gas prices on a dwindling supply outlook put additional pressure on the Eurozone.
Meanwhile, Powell made new comments about the Fed's monetary tightening policy in the United States.
According to media reports at the time of writing, the central bank's balance sheet reduction now only planned to shave up to $3 trillion off its near $9 trillion in asset purchases.
Since February 2020, the Fed's balance sheet has grown by $4.8 trillion, implying that even after the reductions, it will be larger than it was before the pandemic.
Meanwhile, despite rampant inflation, the European Central Bank's balance sheet reached new all-time highs this week.
