Bitcoin (BTC) has written inglorious history on today, June 18, because the price of the market–leading cryptocurrency has – for the first time ever – slipped below a previous record high.
Bitcoin Price Chart (Bitstamp). Source: TradingView
Bitcoin returns to an old record high for the first time
As the data from Cointelegraph Markets Pro and TradingView show, BTC/ USD is now below the so important $ 20,000 mark for the first time since December 2020. According to this, “only” 19,066 US dollars are left on the tableau at the time of writing.
After the publication of the new US inflation figures in recent weeks, the nerves on the financial markets are now bare, because the US Central Bank has announced a significant key interest rate increase in the course of this, which will probably cause even more pressure.
Bitcoin is now getting the receipt by falling below a record high from a previous cycle for the first time in the history of the cryptocurrency. To make matters worse, the $ 20,000 mark was considered a record for a relatively long time and has therefore now been identified as a critical lower limit.
There’s a first time for everything https://t.co/1qLdb67aHR
– cevo (@cryptocevo) June 18, 2022
So far, BTC has always been able to prevent such a return, which now raises the question of what consequences the negative novelty holds for further development. At least the signal effect will certainly be devastating.
The steep downturn that has caused this sobering event is due, among other things, to low liquidity in the order books. At the macro level, the impending collapse of several important players in the crypto industry is the likely trigger.
Luna, Celcius, 3AC = Contagion
Those will lead to more blowups that we are yet to hear of
Things could get worse before they get better. Until you start hearing about how all of these are intertwined and cause other funds to unwind becoming forced sellers https://t.co/oju42hSCNw
– Pentoshi Powell Jr (@Pentosh1) June 15, 2022
A bear market like never before?
With today’s rebound, BTC/USD has taken a whopping 37% losses in the first two weeks of June alone. According to the data from Coinglass, this would also be the weakest June ever, unless the crypto market leader can still catch up by the end of the month.
Since the beginning of the year, the Bitcoin price has again been down 60%, compared to the current record high of 69,000 US dollars from November 2021, even more than 70%.
However, as Cointelegraph had reported, the past also shows that it can decline by 80 – 85% in bear markets for BTC. Thus, the possible price target for the ongoing bottoming out would be 14,000 US dollars and 11,000 US dollars respectively.
Bitcoin monthly statements. Source: Coinglass.com
“Bitcoin needs more volume & volatility than currently exists to reach the level of previous bear markets at 200 MA,” as analyst Rekt Capital notes with a view to the current situation. To this end, he explains that the 200-week moving average has so far acted as a lifelong support for the Bitcoin price:
“A promising sign is that at least the sales volume is above average for the first time this week, but to complete the bottoming, we need even more.“
Bitcoin weekly chart. Source: Tradingview.com
Even if the crypto market leader may have to leave a little more blood, the end of the dry spell may be closer than expected.
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