Today Bitcoin (BTC) broke support at $ 20,000, the high of the previous market cycle.
BTC price breaks down the all-time high of 2017
Cointelegraph Markets Pro e TradingView confirm the loss of $ 20,000 for the first time since December 2020, reaching lows of $ 19,066.
As tensions escalated following comments from the US Federal Reserve on the outlook for inflation, cryptocurrency markets suffered the backlash of a sell-off triggered in the face of dati shock on the consumer price index (CPI) last week.
By losing the psychological threshold of $ 20,000, Bitcoin drops below the high of the previous halving cycle for the first time in its history.
There is a first time for everything
There’s a first time for everything https://t.co/1qLdb67aHR
— cevo (@cryptocevo) June 18, 2022
The largest cryptocurrency had avoided such a move so far, reserved for altcoins: Ether (ETH), in particular, at the beginning of the week, it slipped below the $ 1,000 mark for the first time since January 2021.
Analysts attributed the latest weakness to liquidity problems of the investment fund Three Arrows Capital (known as 3AC), in addition to the related problems the FinTech Celsius protocol and the general macro context.
Moon, Celsius, 3AC = Contagion
These will lead to more explosions that we haven’t heard of yet.
Things are likely to get worse before they get better. Until you begin to feel how all these phenomena are linked together and will cause the dissolution of other funds that will become forced sellers.
Luna, Celcius, 3AC = Contagion
Those will lead to more blowups that we are yet to hear of
Things likely get worse before they better. Until you start hearing about how all of these are intertwined and cause other funds to unwind becoming forced sellers https://t.co/oju42hSCNw
— Pentoshi Powell Jr (@Pentosh1) June 15, 2022
The co-founder of Three Arrows, Zhu Susaid the company “is communicating with interested parties and is fully committed to resolving the issue”without however confirming specific problems.
The sharp drop below $ 20,000 occurred over the trading weekend, when notoriously low order liquidity amplifies volatility.
A bearish year different from the others?
BTC / USD thus recorded losses of 37% in the first two weeks of the month, making this month the worst June ever recorded, according to data from the on-chain monitoring resource. Coinglass.
From one year to the next, the pair is down nearly 60% at the time of writing, and more than 70% below last November’s all-time high of $ 69,000.
As reported by Cointelegraphhistorical trends suggest that 80-84.5% is the classic bear market drawdown target, which would place BTC / USD between $ 11,000 and $ 14,000.
“BTC still needs more volume and volatility than at present to match the volume levels of previous bear market lows on the 200 MA”the popular trader and analyst tweeted Rect Capitalcontinuing the analysis of Bitcoin’s 200-week moving average, a level of key support.
“A promising sign is that the volume of sellers is above average for the first time this week, but much more is needed for the final capitulation.”
The views expressed herein are solely those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment carries risk – you should conduct your research before making a decision.
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