Bitcoin falls below its previous campaign high for the very first moment in decades, resulting in a painful day of losses.
On June 18, Bitcoin (BTC) became the first cryptocurrency to enter a market crash after losing $20,000 resistance.
The price of Bitcoin has fallen below the all-time high set in 2017
According to data from Cointelegraph Commodities Pro and TradingView, BTC/USD has fallen below $20,000 for the first time since December 2020, with press-time low points of $19,066.
Crypto markets faced the weight of a sell-off that began after surprise Consumer Price Index (CPI) results last week, as anxieties increased following the US Federal Reserve’s remarks on the economic outlook.
Bitcoin also made a career first by falling below its preceding half cycle’s peak for the first time in its existence, missing the emotionally critical $20,000 level.
Until today, the leading virtual currency had refrained from making such a move, leaving it to altcoins like Ether (ETH) previously this week.
Talking heads ascribed the latest decline to financial instability at equity investment firm Three Arrows Capital (often referred to as 3AC), as well as previous issues with FinTech standard Celsius and the wider macro climate.
Zhu Su, a co-founder of Three Arrows, said the company was “in the articulation of speech with parties concerned and totally committed to sorting this out” but did not elaborate on the issues.
The sharp drop below $20,000 occurred over the weekend when poor open interest availability exacerbated instability.
Is this a year for bears, unlike anything?
As per data from on-chain surveillance platform Coinglass, BTC/USD lost 37 percent in the first two weeks of the month, rendering June 2022 the worst June on record.
At the moment of writing, the pair was trading about 60% lower year-to-date and was over 70% lower than last November’s only peaks of $69,000.
According to Cointelegraph, past patterns imply that the typical drop objective for market downturns is 80–84.5%, placing BTC/USD between $11,000 and $14,000.
“BTC still requires more volume & turbulence than at now to meet volume levels at prior Bear Market Bottoms at the 200 MA,” renowned investor and researcher Rekt Capital tweeted as he continued his examination of Bitcoin’s 200-week rolling average, which has served as a major lifetime hotline number.
“The fact that seller activity is above normal for the first time this week is a positive indication, except more is required for complete surrender.”
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