Bearish macro warnings from Goldman Sachs caused Bitcoin to almost topple below $12k.
In the past day, a number of macro bearish warnings issued by Goldman Sachs caused Bitcoin (BTC) to threaten to crash to $12,000. Several Goldman Sachs economists have come out with predictions for the pace of increases in Federal Reserve benchmark rates. According to them, the US central bank would hike rates by 0.75% in September alone, and another 0.5% in November.
The rate-hikes have played a significant role in deciding Bitcoin’s value trend in 2022. The period of higher lending rates has made investors let go of riskier asset classes. Bitcoin’s price has already dropped by around 60% year-to-date, and analysts believe BTC has entered the bottom phase at present levels.
BTC/USD daily price chart with an inverse cup-and-handle breakdown setup| source: TradingView
As a technical outlook would suggest, BTC’s value could reduce by about 30% to $13,500 as its price forms an inverse cup-and-handle pattern. However, an intent rally over the 50-day EMA (exponential moving average) around $21,250 could also render the bearish setup invalid.