Bitcoin price falls below $20K for first time since 2020, Ethereum dips under $1K

Bitcoin (BTC), which experienced a bear market on June 18, was the first time that it had been able to do so. The reason? Bitcoin price action lost $20,000 support.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

BTC prices fall below 2017 record high

Data from TradingView and Cointelegraph Markets Pro confirmed that BTC/USD fell below $20,000 for the first-time since December 2020. It also reached a record low of $19,066.

After the comments of the United States Federal Reserve on the inflation outlook, nerves were high in crypto markets. The sell-off began last week after shock Consumer Price Index figures (CPI).

Bitcoin lost the $20,000 psychologically significant mark. It also made a lifetime-first — falling below the previous halving cycle’s highest for the first time ever in its history.

There’s a first time for everything https://t.co/1qLdb67aHR
— cevo (@cryptocevo) June 18, 2022

The biggest cryptocurrency has so far avoided such a move. This was reserved for altcoins like Ether (ETH), which also dropped below $1,000 for the first time since January 2021.

Commentators responded by pointing out that the latest weakness was due to liquidity problems at Three Arrows Capital, also known as 3AC. They also pointed to ongoing troubles related to FinTech protocol Celsius and overall macro-environment.

Luna, Celcius and 3AC = Contagion These will cause more problems than we have yet to hear about. 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

Zhu Su, co-founder of Three Arrows, stated that the company was in the process “of communicating with relevant parties” and is fully committed to working it out. He did not specify any specific issues.

The sudden drop below $20,000 occurred during weekend trading, when volatility was amplified by thin order book liquidity.

Bear year like no other

BTC/USD suffered 37% losses in the first two weeks, making June 2022, according to Coinglass data.

Related: “Nothing issue” — MicroStrategy CEO plans on hodling Bitcoin ‘through adversity”.

The pair has traded almost 60% lower year-to-date at the time of writing. This is 70% less than the record high of $69,000 set in November last year.

Cointelegraph stated that historical trends indicate that 80-84.5% would be the traditional drawdown target for bear market markets. This puts BTC/USD between $11,000 to $14,000.

Performance of the Bitcoin monthly price. Source: Coinglass.com

Popular trader and analyst Rekt capital tweeted that Bitcoin still requires more volume and volatility to match volume levels from previous Bear Market Bottoms at 200 MA.” He continued his analysis of Bitcoin’s 200 week moving average, which is a crucial support line for the future.

“Promising sign” is the fact that seller volume is higher than average for the first time this week, but more is needed to capitulate.

Chart of Bitcoin/USD for one week. Source: Tradingview.comcom. You should do your research before making any investment or trading decision.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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