On the morning of June 14, the Bitcoin rate fell to $ 20.8 thousand for the first time since December 2020. The cryptocurrency has fallen 36% in the past week and is now trading at 68% less than its highest value in November 2020, at $ 69,000.
Experts analyzed the market situation and named the most likely developments in the near future.
“Final wave of structural correction”
I consider the recent decline in the CFA market to be the last wave of structural correction in the market that began late last year. Of course, as can be seen from the liquidation volume of BTC and ETH, the price decline was quite strong, however, technically or fundamentally, I consider this fall to be the beginning of the end for the cryptocurrency market.
Currently, the BTC rate is already difficult for long-term buyers (many owners who have been holding Bitcoin for more than 3 years started selling it) for mining (previous generation devices are already “low” on the S17, verge), so I believe that without significant negative stimuli, investors and miners, in general, will take a wait-and-see attitude and be willing to remove the current downturn without a multifaceted increase in cryptocurrency sales from their stocks.
Those who are stuck in BTC and ETH loudly without a “shoulder” anyway will be patient until the very end. I’m not waiting for a snowstorm to start selling crypto assets now. It is important to note that the “whales” (wallet> 10k BTC) cryptocurrencies accumulate smoothly without being discarded, indicating that there are a large number of players who are not only losing paper but also having a great opportunity at the current price.
From a cyclical point of view, I expect that by the end of July we will see the end of the market downturn and the beginning of the creation of conditions for further growth. At its worst, we will see Bitcoin at $ 17- $ 18 thousand and ETH at less than $ 1 thousand. The space increases.
At the moment, BTC’s $ 19.6 thousand level is historically key, and it’s definitely going to be a struggle: this can be seen both in the BTC options market and the positioning of long-term players.
“The fall of Bitcoin will accelerate to $ 10,000.”
A severe crypto winter has hit the crypto market. Investors lost their appetite for risk due to high inflation in the US. Friday’s data showed the highest growth rate since December 1981. Consumer prices rose 8.6% in May, compared to 8.3% in the previous month. In response to the data, bond yields jumped to new highs. The dollar index exceeded 105 points. As the cryptocurrency market is in the same group as the American stock market, the collapse of the index immediately affected the dynamics of the cryptocurrency. Investors fear that the Federal Reserve’s aggressive rate hike (by 75 basis points) and the tightening of the SP500 and Nasdaq indices will continue to fall.
Over the weekend, Bitcoin and Ethereum tried to stay above the $ 28,000 and $ 1,700 levels, respectively. With the FOMC meeting set for June 15, BTC and ETH rates have broken support and are fast approaching lows. Activation of liquidity on long positions strengthened the downward movement and led to a market crash. Market manufacturers did not try to prevent it, realizing that the fall in sales orders could not be stopped. For the first time since January 2021, the capitalization of the cryptocurrency market has fallen below $ 1 trillion. At stops, the Bitcoin rate fell to $ 20,846 and the Ether to $ 1,075.
The BTC / USD pair has reached key support of $ 20,000. The market situation is crucial. Heterogeneous “cooling” comes. Stablecoin either removes the dollar or suspends token withdrawals to control service and exchange breakdowns. After the Federal Reserve meeting, if the price does not exceed $ 20,000, then the fall on liquid and empty glass to $ 10,000 will accelerate. Jerome Powell helps you prevent crashes and crypto winter.
Many large investors who have bought Bitcoin since 2020 are making a loss. Those who have free money left will be bribed with cheap coins. Then, you need to make sure that the US stock market does not fall.
Bitcoin Support Zone: $ 19-20 thousand. If sellers discount $ 19.5 thousand, everything up to $ 6-8.5 thousand is free. Resistances: $ 28.7k and $ 33k
“We will see new counter-reports again and again”
Cryptocurrencies crash after US exchange. It means reducing the profitability of almost all assets, including risky – cryptocurrencies, investment funds, and cryptocurrency-related exchanges. This increases the fall of Bitcoin, Ether, and other coins.
Now everything will depend on the federal meeting – if the regulator announces a decision to tighten monetary policy tomorrow, this will certainly cause another collapse. Bitcoin can easily go under the $ 20,000 mark and the Ethereum price will drop to $ 800. It will further stimulate investors’ escape from risky assets. This is often just the beginning, and we will see new pre-reports more than once.