Bitcoin (BTC) reached its all-time high of around $1,000 on June 14 as liquidation in the cryptocurrency markets grew.
Bitcoin price hits 18-month low
Data from Cryptooshala Markets Pro and trade view showed BTC/USD hit $20,816 on Bitstamp, the lowest since the week of December 14, 2020.
The sell-off that began before the weekend intensified after the first call on Wall Street on June 13, when bitcoin and altcoins fell along with US stocks.
The S&P 500 ended the day down 3.9%, while the Nasdaq Composite lost 4.7% ahead of key US Federal Reserve comments on its anti-inflationary policy.
However, the worst of the rout has been reserved for the cryptocurrency, with BTC/USD down 22.4% week to date.
The pair was also “uncomfortably close” to crossing the $20,000 mark, trading firm QCP Capital noted, representing an all-time high from the previous halving cycle that had never happened before.
In a circular to Telegram channel subscribers, QCP cited both the topic of inflation and the potential insolvency of the Celsius fintech protocol as driving the selloff.
“We expressed concern about the collapse of a major credit player after the collapse of LUNA. Now the market is panicking about the consequences and consequences if Celsius becomes insolvent,” the company explained.
“Some key liquidation levels the market is looking for are 1150 in ETH, 0.8 in stETH/ETH and 20,000 in BTC. We’re getting close to uncomfortable.”
For other analysts, all bets were off when it came to guessing the low price of BTC or whether key trendlines would remain as support.
Deadly red candle, deadly green candle.
— Michael van de Poppe (@CryptoMichNL) June 13, 2022
Rekt Capital warned that the 200-week simple moving average (SMA) at $22,400 was not accompanied by significant volume interest, leaving the door open to testing lower levels.
“BTC hit the 200-week moving average, but the volume inflow is not as strong as the previous bear market bottoms formed on the 200-day moving average,” he said. said Followers on Twitter.
“But there is a downward bleed below the 200 MA, and maybe that bleed needs to happen this time around to trigger a strong influx of volume.”
At the time of writing, the 200 SMA seemed to act more like resistance than support on the lower timeframes.
Altcoin futures index shows full pullback strength
In altcoins, Ether (ETH) fell 40% below the previous week’s high and approached the $1,000 mark.
Lowest Weekly Close Since December 2020 – 5 Things To Know About Bitcoin This Week
If this happens, it will be the first time ETH/USD has been trading at triple digits since January 2021. As Cryptooshala reported, the pair has already passed its $1,530 peak compared to the previous Bitcoin halving cycle.
Among the altcoins in this downtrend, Rekt Capital claims there was not much cause for celebration, highlighting the waning presence of altcoins compared to Bitcoin.
Indeed, the green support for the HTF, which was lost in May, has since turned into new resistance.
The altcoin index fell 50% from
Since then, the index has reached a new monthly level (orange), which may already show weakness.
— Rekt Capital (@rektcapital) June 13, 2022
Meanwhile, in a sign of pain affecting all crypto traders, data from the network monitoring resource coin glass confirmed intermarket liquidations topped $1.2 billion in just 24 hours.
The views and opinions expressed here are solely those of the author and do not necessarily reflect those of Cryptooshala.com. Every investment and trading step involves risk, you should do your own research when making a decision.
Credit : cointelegraph.com