Bitcoin Drops Below $20,000 For The First Time Since 2020, Ethereum Loses $1,000

Bitcoin (BTC) broke the $20,000 support today, the highest in the previous market cycle.

Hourly chart of BTC/USD (Bitstamp). Source: TradingView

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

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.

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.

Bitcoin monthly performance. Source: Coinglass.com

“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.”

Bitcoin/USD weekly chart. Source: Tradingview.com

The opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment has risks – you should do your research before making any decision.

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