Bitcoin (BTC) first hit the bear market on June 18, when BTC price action broke the $ 20,000 support.
BTC price falls to record high in 2017
Data from Cointelegraph Markets Pro and TradingView confirmed that the BTC / USD pair fell below $ 20,000 for the first time since December 2020, hitting a low of $ 19,066 at the time of writing this report.
As nerves of comments from the U.S. Federal Reserve on the outlook for inflation rose, cryptocurrency markets suffered sales, which began after appalling figures from the consumer price index (CPI) last week.
By lowering the psychologically significant $ 20,000 mark, bitcoin fell below its previous high half cycle for the first time in its history.
The first time for everything is https://t.co/1qLdb67aHR
—Cevo (@cryptocevo) June 18, 2022
The first time for everything https://t.co/1qLdb67aHR – cevo (@cryptocevo) June 18, 2022.
The largest cryptocurrency had avoided such a move so far, reserving it for altcoins, including Ether (ETH) earlier this week.
In response, commentators pointed to the recent weakness in liquidity issues at the Three Arrows Capital investment fund (commonly referred to as 3AC), as well as the existing turmoil surrounding the FinTech Celsius protocol and the global macro environment. .
Luna, Celcius, 3AC = Holding
As a result, there will be more speculation that we have not yet heard about them
Things are likely to get worse before they get better. Until you start hearing about how all of these are intertwined and cause other funds to be released to become forced sellers https://t.co/oju42hSCNw
—Pentoshi Powell Jr (@ Pentosh1) June 15, 2022
Luna, Celcius, 3AC = Holding This will lead to other explosions that we have not yet heard of. Things are likely to get worse before they get better. Until you start hearing about how it’s all intertwined and caused other funds to find a solution and force themselves to sell. https://t.co/oju42hSCNw. – Pentoshi Powell Jr (@ Pentosh1) June 15, 2022
Three Arrows co – founder Zhu Su said the company is “communicating with relevant parties and is fully committed to resolving this issue,” without confirming the specific issues.
The sharp fall below $ 20,000 occurred over the weekend, as low order book liquidity increased volatility.
Year of the bear like any other?
So BTC / USD sealed losses of 37% for the first two weeks of the month, making June 2022 the worst ever, according to data from a monitoring resource on the Coinglass chain.
Read also: ‘No problem’ – CEO MicroStrategy plans to deposit bitcoin despite distress
To date, the pair has traded nearly 60% lower at the time of writing this report, more than 70% below the full – time highs of $ 69,000 since last November.
As Cointelegraph reported, historical trends suggest that the classic disadvantage target for bear markets is 80-84.5%, which adds between $ 11,000 and $ 14,000 to BTC / USD.
“BTC still needs more volume and volatility than it does now to match previous Bear Market Bottoms volume levels at 200 moving averages,” he said. tweeted popular trader and analyst Rekt Capital, continuous analysis of 200 week moving average bitcoin, mainline support.
“It is a promising sign that seller volume is above average for the first time this week, but much more is needed for final capitalization. »
The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of Cointelegraph.com. All investment and business transactions involve risk. You should do your own research before making a decision.