Bitcoin (BTC) is in its lowest trade since mid-December 2020 on June 13, but the bottom could be anywhere.
As sales over the weekend intensify, BTC / USD has now broken down below real prices for the first time since March 2020, confirming data from Cointelegraph Markets Pro and TradingView.
Bitcoin sticks to real prices
At around $ 23,400, the real price – the average price at which each BTC last moved – acts as the first reliable support to date in a lower time frame.
Previous levels, including those identified as potential bottoms, have not held up and attitudes continue to support further selling pressures thanks to the repercussions of Celsius, inflation and forthcoming actions of the US Federal Reserve.
As BTC / USD could put in the final macroeconomic floor, meanwhile, is currently the subject of heated debate.
The first stop for significant downsizing is the 200-week simple moving average (200 SMA), traders and analysts agree.
At $ 22,370 as of June 13, 200 SMA has served as a key support throughout Bitcoin’s lifetime, with just short wicks below what marks the bottom line of generations.
200 SMA has never interrupted its own boom and the hope is that achieving that will allow bulls a respite.
“People are looking to buy there, it will jog more than likely in that area,” Josh Rager argued in a special video update the other day.
Although he described the 200-SMA jump as a “self-fulfilling prophecy,” thanks to widespread interest in it, he warned that it was a guarantee that BTC / USD would not continue south this time.
This is thanks to a historical precedent, which shows that Bitcoin reaches up to 84% below the latest historical high. At $ 69,000, such a bottom would be only $ 11,000.
“It would be harmful; “I do not think prices will fall that low, I mean you are basically looking at the whole picture of the whole beef market and we have never seen that,” Rager continued.
Instead, the 2017 area of interest is a historic high of $ 20,000, as well as the area just below, reaching $ 17,000. Also worth paying attention to is $ 14,000, which is equivalent to an 80% withdrawal from current highs, he added.
As the Cointelegraph reported, some of these levels have already been underlined by others as potential bottoms, including by trader and analyst Rekt Capital.
In a series of tweets on June 13, the importance of 200 SMAs came back to the fore.
Historically, #BTC tends to pull -14% to -28% below the 200-week MA
-14% liquid this time would mean ~ $ 19,000 $ BTC
– Rekt Capital (@rektcapital) June 13, 2022
The Fed will be the last chance hall for bulls
At the time of writing, BTC / USD had managed to avoid a new dip in line with the US stock market.
Related: Lowest weekend since December 2020 – 5 things to know about Bitcoin this week
The S&P 500, on the other hand, fell 3% in the first hour after trading, while the Nasdaq Composite Index fell 3.6%.
To stop the decline in cryptocurrencies, some argue that only the central bank can intervene and reverse monetary tightening as rising interest rates reduce interest rates.
“Explain how little this pile of cryptocurrencies has to do with the Celsius and stETH drama and everything to do with widespread panic in risky assets (both stocks and cryptocurrencies) and broken tables,” said economist, trader and entrepreneur Alex Krueger. said Twitter followers the other day, Celsius brushed aside the news.
Further entry read:
“It’s just my opinion, I’m often wrong. I estimate Celsius added 1.2x to the fuel. Everyone does it about Celsius. Look at the media tomorrow. But without the CPI and equities index on Friday it would not have happened.”
Nevertheless, there were few and far between deceptions for long-standing Bitcoin market participants. Should BTC / USD fall below $ 20,000, it would be the first time the first half had crossed.
– Ansel Lindner (@AnselLindner) June 13, 2022
“Without a central bank, I expect this to be the first cycle for Bitcoin to fall below the all-time high of the previous round,” said Charles Edwards, CEO of Capriole.
The views and opinions expressed herein are those of the authors only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading business involves risk, you should conduct your own research when making a decision.
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