Latest Posts

Plummeting crypto markets see no reprieve as Bitcoin loses $23,000

- Advertisement -

👋 Do you want to work with us? Cryptooshala is recruiting for several vacancies!

Bitcoin (BTC) fell 16% on Monday, sending the market leader below $23,000 for the first time since December 2020.

- Advertisement -

Although the bulls successfully defended $25,000 in the early hours of Monday, continued selling pressure resulted in a breakout of this price level around 0800 GMT.

bitcoin hourly chart
Source: BTCUSDT is
- Advertisement -

Meanwhile, panic selling has sent the total cryptocurrency market capitalization down to $925 billion, a year-to-date loss of 58%. The dip was bought to cause an immediate spike to $1.041 trillion.

- Advertisement -

But further selling pressure led to a long drawdown after the surge. The current total market capitalization is hovering close to the previous local bottom, at $947 billion.

Over the weekend, the price of bitcoin gradually declined. But on Monday morning, Asian trading caused a quick fall, dropping from $28,000 to $22,600 at its lowest point.

Bitcoin falls as inflation fears rise

On Friday, the US Department of Labor released the consumer price index for May, showing an increase of 0.3% compared to the previous month, marking a 40-year high at 8.6%.

The news triggered an immediate selloff in Bitcoin and the broader cryptocurrency markets as investors sought to become more defensive amid the likelihood of further quantitative tightening from the Fed.

Commenting on this, Alexey Kuptsikevichsenior market analyst at FxPro, said the CPI is putting more pressure on the Fed to accelerate its hawkish stance.

“Resuming inflation to a 40-year high is sure to grab public attention over the weekend and put pressure on the Fed. Potentially, such a high value can provoke a more severe [Fed] position in the accompanying comment.

All of this is fraught with problems for bitcoin and other risky assets. But the question is how low can BTC fall.

Technical analysis

Trader without_worries shared his analysis using a two-week bitcoin chart, saying the market bottom is “much closer than you think.”

Confirmation of his opinion is the inevitable “two-week death cross”, which should occur on June 20th. At this point, the 21-week exponential moving average will cross below the 50-week simple moving average.

He adds that previous times this has happened “perfectly called a market bottom.”

Bitcoin TA

“What you have is a two-week death cross. It’s 2-week / 21-week EMA (yellow line) crossing the 2-week/50-week SMA (Blue line). Death will be printed on June 20.”

Meanwhile, burning-theta uses a “simple Fibonacci projection” to determine a $12,200 bottom that he expects to play out according to past major wave cycles.

Bitcoin technical analysis

“When the first leg of the correction is projected from the top of the bear rally high, the 12,173 target is the point where both major corrective waves are equal/proportional — a common but not guaranteed corrective spot. In the end.”

It is important to note that a common criticism of technical analysis is that it does not take into account the macroeconomic landscape.

Credit :

- Advertisement -

Latest Posts

Don't Miss