Bitcoin (BTC) broke the $20,000 support today, the highest in the previous market cycle.
BTC price breaks all-time high in 2017
Cointelegraph Markets Pro and TradingView both confirmed a $20,000 loss for the first time since December 2020, hitting a low of $19,066.
With tensions rising after comments from the US Federal Reserve regarding inflation expectations, cryptocurrency markets suffered a backlash Heavy selling caused by shock data on CPI (CPI) last week.
By missing the psychological threshold of $20,000, Bitcoin drops below the high of the previous halving cycle for the first time in its history.
There first for everything
There is a first time for everything https://t.co/1qLdb67aHR
– cryptocevo June 18 2022
The largest cryptocurrency to date avoided a similar move, intended for altcoins: Ether (ETH), in particular, at the start of the week fell below the $1,000 mark for the first time since January 2021.
Analysts attributed the recent weakness to liquidity problems at investment fund Three Arrows Capital (known as 3AC), as well as problems with the FinTech Celsius protocol and the overall environment.
Moon, Celsius, 3AC = Contagion
This will lead to more explosions that we haven’t heard of yet.
Things are likely to get worse before they get better. Until you start to get a feel for how all these phenomena are related to each other and will cause other funds to disintegrate that will become forced sellers.
Luna, Celcius, 3AC = Infection
This will lead to more explosions that we haven’t heard of yet
It’s possible that things will get worse before they get better. Until you start hearing how all these things intertwine and cause the other chests to relax and become forced sellers https://t.co/oju42hSCNw
– Pentosh Powell Jr. (@Pentosh1) June 15 2022
Zhou Su, one of the founders of Arrows Three Arrows Company, said “She communicates with the concerned parties and is fully committed to resolving the issue”but without confirming specific problems.
The sharp drop to below $20,000 occurred over the weekend in trading, when he was famous for it Low demand liquidity amplifies volatility.
A bearish year different from the others?
Thus, the BTC/USD pair posted losses of 37% in the first two weeks of the month, making the current month the worst June ever recorded, according to data from the watch provider Coinglass.
Year to year, the pair is down nearly 60% at the time of writing, and less than 70% from last November’s high of $69,000.
As reported by Cointelegraph, historical trends indicate an 80-84.5% target for a classic bearish market pullback, which would put BTC/USD between $11,000 and $14,000.
“BTC still needs more volume and volatility than it currently has to match the volume levels of the previous bear market lows on the 200 MA.”The famous merchant and analyst tweeted Rekt Capitaland continuing to analyze Bitcoin’s 200-week moving average, which is a key support level.
“It is a promising sign that seller volume is above average for the first time this week, but more is needed for the eventual capitulation.”
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