Historically, the loss of value realized in the cryptocurrency market over the past few months has entered the record books and the total capitalization of the cryptocurrency market has fallen from $ 3 trillion to $ 991 million.
June was a very painful month for investors after bitcoin (BTC) price fell nearly 40% to mark one of the worst calendar months on record, according to a recent report from market research firm Delphi Digital cryptocurrencies.
In the face of sharp market correction, a number of BTC price metrics on a chain have begun to reach levels similar to those seen during previous market lows, but that does not mean that traders should expect turnaround anytime soon, as history has shown. weakness can drag on for months.
Macro Headwinds Weigh on BTC Price
One of the key factors weighing cryptocurrencies and other risky assets is the strength of the US dollar.
Combined with rising inflation and falling economic indicators, the strength of the DXY is a sign that an economic slowdown is almost inevitable, with forecasts now claiming a recession in early to mid – 2023.
Against this backdrop, BTC is now looking to create a local bottom around the 2017 high cycle near $ 20,000, “the last clear structural support on a bitcoin high-scale chart. »
This current cycle is the first time in bitcoin history that the price has fallen below the full-time high during a previous bull market cycle. If BTC fails to maintain support close to $ 20,000, Delphi Digital reported that “support should be expected at around ~ $ 15,000, then ~ $ 9,000 to $ 12,000 if that level does not occur.”
While these estimates may seem grim, it is worth noting that the price of BTC fell by about 85% between peak and trough during each of the previous two major bear markets.
If the same thing happened during the current bear market cycle, it would raise BTC at $ 10,000, representing a further 50% decline from current levels and entering the 2018-2019 price range.
For this reason, analysts at Delphi Digital believe that “even more pain lies ahead with dangerous assets. »
Read also: Bitcoin is in danger of hitting a new low as $ 20,000 amid dollar / euro parity
Where is the bottom?
The percentage of bitcoin supply kept in profit and the profit-to-loss ratio realized on bitcoin are approaching the levels seen in previous bear markets, but each still has “a small margin” before reaching the part lowest of this cycle, according to A to digital delphi.
According to the firm, “momentum indicators and valuation measures can remain oversold or undervalued for a long time”, making them “poor timing tools”, for which immediate reversals are unpredictable.
Contrasting investors may want to keep an eye on market sentiment as well as the Fear and Overcrowding index, which has now reached all-time lows.
Regarding a potential upside move, Delphi Digital reported that “BTC has the top spot due to the previous sell-off after 3AC,” and identified the next major resistance level at $ 28,000.
Delphi Digital said,
“BTC is likely to continue to consolidate until we have some kind of macro-catalyst. »
The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of Cointelegraph.com. All investments and trades involve risk. You should do your own research before making a decision.
Related posts:
Final Surrender – 5 Reasons A Low Bitcoin of $ 10,000 Could Reach 
Buy the bottom of the wave, or expect the maximum damage? Analysts Debate Is Bitcoin Price Basis 
Bitcoin is almost at its “realized” price, but analysts believe there is still room for a sharp fall 
Bitcoin analysts are watching these BTC price levels as a key trend emerges
