The second quarter of the year was incredibly bloody for Bitcoin. The base ended Q2 56%, falling from $ 45,000 to $ 19,900 and its worst quarter since Q3 2011. Bitcoin is now spending $ 20k – a key zone.
A historic fall for bitcoin
Bitcoin fell 37% in June. But it was not just the numbers that were grim. June was also the month of rejection of Bitwise and Grayscale applications for spot-based Bitcoin ETFs. A legal grayscale was immediately announced.
In addition, the collapse of the collapse of Terraform Lab and Three Arrows Capital’s UST stablecoin seems to have become something contagious among crypto firms: another crypto lending and trading platform, Vauld, has all withdrawals, trades and deposits suspension and points to the “financial challenges”. “of current market conditions.
In the second quarter of 2022, Bitcoin opened at $ 45,000 and fell below $ 20,000. However, he managed to revisit the main $ 20,000 price level just in time to close June above that level. The coin must now break over $ 20,500 and hold over $ 22,000 to eliminate any near – term risk of disadvantage.
Overall, Arcane Research’s most recent weekly report notes that this fall is “a historic quarter for the price of bitcoin, and we have to go back 11 years to get a more brutal quarter.” Bitcoin finished the quarter just under $ 20,000, down 56%.
What to expect now?
However, the course of BTC may soon see positive times again. Analyst Michaël van de Poppe believes the coin could soon surpass the $ 20,000- $ 20.4,000 key and then “move towards $ 23,000 and a summer recovery rally.” He also says the base is “sustainable” and “the situation looks set to be relatively early.”
Bullish variation on the daily time frame for #Bitcoin on the future of CME.
Flipping $ 20K and we will be good to go towards $ 23K and Summer Relief Rally.
At the end. pic.twitter.com/mcLSvzvpyM
– Michaël van de Poppe (@CryptoMichNL) July 4, 2022
As Arcane Research said, the $ 20k Bitcoin level is the highlight of recent bull passing. According to Arcane, “technically the monthly candle closing was positive” – with June closing above the peak of 2017. The report also focuses on a potential support / resistance curve, “where post-resistance will act as support . ”
However, macroeconomic factors may later reverse the positive outlook. Global uncertainty further increases pressure.
The S&P 500 is down 20% from the peak in January, which is reflected in Bitcoin. Deutsche Bank AG CEO Christian Sewing predicts a 50% probability of a global recession.
Other big banks see them coming too. An economic downturn of this magnitude could extend over several quarters.
What Analysts Say
Bloomberg reports on the current impact of inflation rates and notes:
“The crop for the US is already at 12.2%, a similar level at the start of the pandemic and after the 2008 financial crisis.”
Anna Wong, US Chief Economist at Bloomberg Economics writes:
“The risk of a self-fulfilling recession – which could happen as early as next year – is higher than ever before. While family and corporate balance sheets are strong, worries about the future can lead to consumer withdrawal, encouraging smaller companies to hire and invest. ”
Likewise, the self-fulfilling recession may scare the paintings for the crypto market. Dangerous assets are expected to suffer from investor withdrawal during an economic downturn. This can lead to panic selling and gloomy prices.
Text credit: Newsbtc
Last updated on July 7, 2022
Crypto Launchpad: The Best Telegram Group!
- Neutral market analyst
- Daily summary: winners / losses of the last 24 hours
- Everything about the current NFT hype
Lucky Block: The Best Cryptocurrency 2022!
- Encrypted lottery where everyone is a winner!
- Based on blockchain protocols
- No fees, 100% payment percentage.
Defi Medal (DEFC): Best Defi Medal 2022!
- DeFi base with maximum capacity in 2022
- Meditation, acquisition of LP and signaling ensures long-term topography
- 1,000% Rally feasible!
Crypto-currencies are a highly volatile, unregulated investment product. Your capital is at risk.