Bitcoin price falls below $20K for first time since 2020, Ethereum dips under $1K

0
142
Advertisement

BTC price surpasses all-time high of 2017
Data from Cointelegraph Markets Pro and TradingView confirmed the price of BTC/USD fell below $20,000 for the first time since December 2020, reaching its lowest level at press time at $19,066.

With nerves running high after the US Federal Reserve’s comments on inflation expectations, cryptocurrency markets have borne the brunt of the sell-off, which began after last week’s surprising Consumer Price Index (CPI) numbers.

After losing the psychologically significant $20,000 mark, Bitcoin also made its first life – dropping below the high of the previous halving cycle for the first time in its history.

The largest cryptocurrency to date has avoided such a move, booking altcoins, notably Ether (ETH) earlier in the week, which has now also fallen below the $1,000 mark for the first time since January 2021.

In response, commentators have attributed the recent weakness to liquidity issues at investment fund Three Arrows Capital (commonly known as 3AC) as well as current issues related to the FinTech Celsius protocol and the overall macro environment.

Chu Su, co-founder of Three Arrows, said the company is “in the process of communicating with relevant parties and is fully committed to working to resolve this issue,” without confirming specific issues.

The sudden drop to below $20,000 came during weekend trading as liquidity with thin trades compounded volatility.

A bear year like no other?
Thus, the BTC/USD pair made up 37% of its losses in the first two weeks of the month, making June 2022 the worst month of June on record, according to data from on-chain monitoring resource Coinglass.

RELATED: ‘Nothing’ – MicroStrategy CEO Plans to Recruit Bitcoin ‘Through Adversity’

Year-to-date, the pair is down nearly 60% at the time of writing, more than 70% below last November’s high of $69,000.

As reported by Cointelegraph, historical trends indicate an 80-84.5% target for a classic bear market pullback, putting BTC/USD between $11,000 and $14,000.

Bitcoin monthly price performance. Source: Coinglass.com
“BTC still needs more volume and volatility than right now to match the volume levels at the previous Bear Market bottoms at 200 MA,” said Rekt Capital, a popular trader and analyst on Twitter, continuing to analyze Bitcoin’s 200-week moving average, a key support line. forever.

“The most promising sign is that seller volume is above average for the first time this week but more is needed for the eventual capitulation.”

Advertisement

LEAVE A REPLY

Please enter your comment!
Please enter your name here