BTC / USD 1 hour candle chart (Bitstamp). Source: TradingView
The price of Bitcoin reaches a low of 18 months
Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD reached $ 20,816 on Bitstamp, the lowest since the week of December 14, 2020. A sell-off that began before the weekend intensified after the opening bell of Wall Street on June 13, with Bitcoin and altcoin falling to the same level as the shares of the United States. The S&P 500 closed the day down 3.9%, while the Nasdaq Composite Index fell 4.7% amid the US Federal Reserve’s key comments on its anti-inflation policy. However, the worst of the route was committed to encryption and with this BTC / USD lost 22.4% from the beginning of the week to the time of writing. The pair were also “uncomfortably close” to surpassing the $ 20,000 mark, according to trading firm QCP Capital, which represents the all-time high of its previous half cycle, something that had never happened before. In a circular to Telegram subscribers, the QCP pointed to both the issue of inflation and possible insolvency in the fintech Celsius protocol as the driving force behind the sale. “We are concerned about the collapse of a major credit player following the LUNA explosion. The market is now panicking about the impact and the transmission if Celsius becomes insolvent “, he explained: “Some of the key liquidation levels the market is looking for are 1,150 in ETH, 0.8 in stETH / ETH and 20,000 in BTC. We are approaching uncomfortably “. For other analysts, all bets were closed when they were to guess the BTC price threshold or if the key trend lines would act as support. Deadly red candle, deadly green candle. – Michaël van de Poppe (@CryptoMichNL) 13 June 2022 Rekt Capital warned that the simple 200-week moving average (SMA) at $ 22,400 was not accompanied by significant volume interest, leaving the door open for lower-level testing. “BTC has reached the 200-week MA, but the volume influx is not as strong as in the previous Bear Market Bottoms formed at the 200 MA,” he told his Twitter followers: “But there is a negative drain below 200 MA and maybe this removal should happen this time to inspire a strong volume inflow.” At the time of writing, the 200 SMA seemed to work more as a resistance than as a support in low time frames. BTC / USD 1 week candle chart (Bitstamp) with 200 SMA. Source: TradingView
The Altcoin futures index shows the full power of the reversal
In altcoins, Ether (ETH) fell 40% below last week’s high near the $ 1,000 mark. If that breaks, it will be the first time the ETH / USD has traded in triple digits since January 2021. According to Cointelegraph, the pair had already exceeded the $ 1,530 ceiling from the previous Bitcoin doubling cycle. In all altcoins, there was no reason to celebrate this downward trend, Rekt Capital argued, stressing the importance of alt versus Bitcoin. Indeed, the green HTF support lost in May has since turned into new resistance The Altcoin index has fallen -50% since then The Index has since reached a new Monthly level (orange) which may already show weakness The strongest support is in the green below #Ethereum #Crypto pic.twitter.com/cJlra7EkIq – Rekt Capital (@rektcapital) June 13, 2022 Meanwhile, as a sign of pain affecting all cryptocurrencies, data from the Coinglass chain’s tracking resource confirmed that cross-market liquidations exceeded $ 1.2 billion in just 24 hours. Encryption liquidation diagram. Source: Coinglass The views and opinions expressed herein are those of the author alone and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
