The price of bitcoin (BTC) came within just $1,000 of its all-time highs from the previous halving cycle on June 14 as liquidations surged across all cryptocurrency markets.
Bitcoin price hits 18-month low
Data from Cointelegraph Markets Pro and TradingView showed that The BTC/USD pair reached $20,816, on Bitstamp, its lowest since the week of December 14, 2020.
A sell-off that began before the weekend intensified after Wall Street’s opening bell on June 13, sending bitcoin and altcoins tumbling in pace with US stocks.
The S&P 500 ended the day down 3.9%, while the Nasdaq Composite Index lost 4.7% pending key comments from the US Federal Reserve on its anti-inflationary policy.
However, the worst of the fall was reserved for cryptocurrencies, and with it the BTC/USD pair lost 22.4% from the start of the week to the time of writing.
The pair was also “uncomfortably close” to crossing the $20,000 mark, According to the trading company QCP Capital, which represents the all-time high of its previous halving cycle, something that had never happened.
In a circular sent to subscribers of the Telegram channel, QCP noted that the issue of inflation and the potential insolvency of the Celsius fintech protocol were driving the sale.
“Since the fall of LUNA, we have raised concerns about a major credit player going bankrupt. The market is now panicking over the shock and contagion if Celsius becomes insolvent.”explained:
“Some key sell-off levels the market is looking for are $1,150 in ETH, 0.8 in stETH/ETH, and $20,000 in BTC. We are approaching those levels uncomfortably.”
For other analysts, all bets are off when it comes to guessing the BTC price floor. or if the key trend lines would hold as support.
Deadly red candle, deadly green candle.
— Michael van de Poppe (@CryptoMichNL) June 13, 2022
Deadly red candle, deadly green candle.
Rekt Capital warned that the 200-week simple moving average (SMA) at $22,400 had not been accompanied by significant volume interest, leaving the door open for a test of lower levels.
“BTC has hit the 200-week MA, but the volume inflow is not as strong as previous bear market bottoms formed at the 200 MA”them said to his Twitter followers:
“But the bearish wick below the 200-week MA does occur and perhaps this wick needs to occur this time to inspire a strong influx of volume.”
At the time of writing this article, the 200 SMA seemed to be acting more like resistance than support on the lower timeframes.
Altcoin futures index shows full pullback strength
As for altcoins, Ether (ETH) price fell as much as 40% below the previous week’s high to approach the $1,000 mark.
Should it drop below that mark, it would be the first time the ETH/USD pair has traded at triple-digit prices since January 2021.. As Cointelegraph reported, the pair had already crossed its peak of $1,530 from the previous Bitcoin halving cycle.
Among altcoins, there is little cause for celebration in this downtrend, argued Rekt Capital, highlighting the blatant presence of altcoins against bitcoin.
Indeed the green HTF support that was lost in May has since turned into new resistance
Altcoin Index has failed -50% since
The Index has since reached a new Monthly level (orange) which may be showing weakness already
Strongest support is at green down below#Ethereum #crypto pic.twitter.com/cJlra7EkIq
— Rekt Capital (@rektcapital) June 13, 2022
The green HTF support that was lost in May has turned into a new resistance. The Altcoin Index has fallen -50% since then. The index has since reached a new monthly level (orange) which may already be showing weakness. The strongest support is in the green below.
For his part, in a sign of pain that affects all cryptocurrency traders, data from on-chain monitoring resource Coinglass confirmed cross-market liquidations topping $1.2 billion in just 24 hours.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. All investment and trading involves risk, so you should do your own research when making a decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.