(MENAFN- Daily Forex) The BTC/USD has been very quiet during the trading session on Tuesday as we continue to hang around the $21,000 region. At this point, the market is likely to see a bit of hesitation until we get through the Jackson Hole Symposium. This is because various central bank speakers will be bloviating on what they are going to do next , in the fight against inflation. While many crypto traders have no idea, the reality is that whatever happens in the fiat world greatly influences what happens in the crypto world.

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If monetary policy tightens, which is essentially what all central banks have been suggesting, it will work against risk-taking, and therefore work against the value of Bitcoin. After all, Bitcoin needs to see a lot of risk appetite to go higher. The massive selloff from 4 days ago suggests that we are going to see further downside momentum. If we break down below the $20,000 level, it's likely that we would continue to go much lower. If we were to break down below that level, could open up a move all the way down to the $12,000 level, which has been a longer-term target for quite a few traders.Market Struggles to Go Higher

• The 50-Day EMA sits just above, and it should offer quite a bit of resistance as well. The Bitcoin market is one that I would look to fade rallies at the first signs of exhaustion because the $25,000 level has offered quite a bit of resistance.
• After that, the market could go to the $28,000 level, which extends to the $32,000 level. It's not until we break through all of that that I would consider the overall trend of the market changed.
• Because of this, it's very likely that we will continue to see a lot of hesitation to go higher, so fading rallies probably work.

If and when we finally get down to the $12,000 level, at that point I would start to build a longer-term position as we could enter an accumulation phase. Bitcoin has done this before, fallen quite drastically and then did nothing for a couple of years before taking off. I don't know that we are done selling off, because I don't think that the risk appetite has returned strongly enough to send the market much higher.

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