Bitcoin (BTC) suffered further losses on June 12 as low weekend trading volumes fueled an ongoing sell-off.

Hourly candlestick chart BTC/USD (Bitstamp). Source: Trading View

Analyst Compares Pumping Risky Assets to 1929

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Data from Cryptooshala Markets Pro and trade view showed that BTC/USD hit a low of $27,150 for the sixth day in a row.

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With the close of the week still hours away, the pair was in danger of resuming a losing streak that had previously seen a record nine consecutive weeks of red candles.

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To avoid this outcome and have a second green close, BTC/USD needed to gain more than $2,000 compared to the current spot price, which is $27,400 at the time of writing.

Weekly candlestick chart BTC/USD (Bitstamp). Source: Trading View

With support levels failing to turn the mood due to thinner liquidity during ‘after hours’ weekend trading, analysts were wary of a retest of May’s ten-month lows.

“Well, Bitcoin failed to hold $29.3K and started to drop even more. We’ll see how the $28,500 area reacts.” – Cryptooshala contributor Mikael van de Poppe wrote in its latest BTC update on June 11th.

“If it’s not, there are 26/24 thousand dollars on the cards.”

Amid ongoing talk of a “capitulation” of crypto assets, others have focused on the fate of highly correlated stock markets. Mike McGlone, senior commodities strategist at Bloomberg Intelligence, believes that risky assets more broadly may already have peaked in abundance over the past two years.

“If the stock market continues to fall, practically everything will peak,” he said. said Followers on Twitter.

“Just some normal return might seem like a bust, and the 2020-21 risk asset pump could go down in history like 1929 and 1999.”

Meanwhile, at daily lows around $27,000, Bitcoin was trading closest to its May “mini-surrender” as Terra LUNA exploded on that day of turmoil.

So for many, the question was how to find out where the true bottom limit of the macroeconomic price of Bitcoin could be.

“If the price hits the low 20k, you will see most CTs asking for 10k or even less. This will be the bottom confirmation,” Il Capo of Crypto’s popular Twitter account. argued.

As Cryptooshala reported, generation lower bound assumptions range from $27,000 to a grimly bearish $14,000 or even lower.

Ethereum Makes Key Realized Price Crossover

Meanwhile, for altcoins, the picture was more shaky.

Bitcoin price threatens lowest closing week since 2020 as inflation scares markets

A look at the top 10 cryptocurrencies by market capitalization showed that daily losses are larger than those of BTC/USD, with some losses exceeding 10%.

Ether (ETH), the largest altcoin, is down about 7% on the day, pushing the spot price below the strike price for the first time since May.

The realized price refers to the combined price at which each token was last moved, and breaking it exposes ETH to an increased risk of panic-based capitulation. Bitcoin’s realized price of around $24,000 remained virtually unchanged during the May drop.

“Due to the price drop over the weekend, the Ethereum market fell below the realized price of ETH of $1,781,” said analytics firm Glassnode. commented on the attached diagram.

“This means the market is holding an average unrealized loss of -18.4%. The realized price of ETH 2.0 deposits is higher at $2,404 and the unrealized loss is -39.6%.”

Ethereum realization price compared to the annotated ETH/USD chart. Source: Trading View

The views and opinions expressed here are solely those of the author and do not necessarily reflect those of Every investment and trading step involves risk, you should do your own research when making a decision.