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Bitcoin drops below $ 20,000 for the first time since 2020, Ethereum loses $ 1,000

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Bitcoin drops below $ 20,000 for the first time since 2020, Ethereum loses $ 1,000
Written by aquitodovale

Bitcoin (BTC) broke support at $ 20,000 today, the high of the previous market cycle.

BTC / USD (Bitstamp) hourly chart. Source: TradingView

BTC price breaks down the all-time high of 2017

Cointelegraph Markets Pro and TradingView confirm the $ 20,000 loss for the first time since December 2020, hitting lows of $ 19,066.

As tensions escalated following comments from the US Federal Reserve on the outlook for inflation, cryptocurrency markets suffered the backlash of a sell-off triggered by the shock data on the consumer price index (CPI) last week.

By losing the psychological threshold of $ 20,000, Bitcoin drops below the high of the previous halving cycle for the first time in its history.

There is a first time for everything

The largest cryptocurrency has so far avoided a similar movement, reserved for altcoins: Ether (ETH), in particular, at the beginning of the week, slipped below the $ 1,000 mark for the first time since January 2021.

Analysts attributed the latest weakness to liquidity problems at the Three Arrows Capital investment fund (known as 3AC), as well as problems related to the FinTech Celsius protocol and the general macro environment.

Moon, Celsius, 3AC = Contagion

These will lead to more explosions that we haven’t heard of yet.

Things are likely to get worse before they get better. Until you begin to feel how all these phenomena are linked together and will cause the dissolution of other funds that will become forced sellers.

Three Arrows co-founder Zhu Su said the company “is communicating with interested parties and is fully committed to resolving the issue”without however confirming specific problems.

The sharp drop below $ 20,000 occurred over the trading weekend, when notoriously low order liquidity amplifies volatility.

A bearish year different from the others?

BTC / USD thus recorded 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 on-chain monitoring resource Coinglass.

From one year to the next, the pair is down nearly 60% at the time of writing, and more than 70% below last November’s all-time high of $ 69,000.

As reported by Cointelegraph, historical trends suggest that 80-84.5% is the classic bear market drawdown target, which would place BTC / USD between $ 11,000 and $ 14,000.

Bitcoin monthly performance. Source: Coinglass.com

“BTC still needs more volume and volatility than at present to match the volume levels of previous bear market lows on the 200 MA”the popular trader and analyst tweeted Rekt Capitalcontinuing to analyze Bitcoin’s 200-week moving average, a key support level.

“A promising sign is that the volume of sellers is above average for the first time this week, but much more is needed for the final capitulation.”

Bitcoin / USD weekly chart. Source: Tradingview.com

The views expressed herein are solely those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment carries risk – you should conduct your research before making a decision.



#Bitcoin #drops #time #Ethereum #loses

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