Bitcoin price recently dropped to $20,000 levels after the biggest drop of this year. The bears that gained strength in the market broke the critical support levels very hard, leaving the resistance levels completely out of the game.
bitcoin The price did not register an upside break in the past week as it traded ‘red’ for the eighth consecutive day, also falling on Wednesday. BTC tested the psychological $20,000 level during the European session but the bears failed to break it on the first try. Cryptocurrency markets continue to decline as hedge fund Three Arrows Capital suffers from the consequences of negative events experienced by Terra and Celsius Network.
In addition to the very strong downward pressures from the heavily leveraged cryptocurrency market, the risk aversion mood that dominates the financial markets is also the biggest trigger behind this decline. The Federal Reserve’s board of directors will meet today and will raise interest rates by 50-75 basis points, according to experts’ expectations. More importantly, the Fed will also update its point plan (i.e. future rate hike projections) and make more drastic hawk changes to the already pretty hawkish outlook, or President Jerome Powell’s pessimistic words will likely continue to destroy high-risk assets like stocks and cryptocurrencies. it will.
$BTC owners: Everything you are feeling right now…
it is here. pic.twitter.com/TRvGL42ML8
— James Lavish (@jameslavish) June 14, 2022
bitcoin price It is located at a narrow point and is experiencing very sharp movements, as in the markets where every asset class sees money outflow. Unfortunately, risk assets such as cryptocurrencies and stocks have suffered the most in such markets.
Bitterly Fresh in Bitcoin Price
Bitcoin price continued to decline on Monday after the strength of the dollar resumed on Friday. At a time when investors were starting to forget about the debacle of the Terra ecosystem, news of a crypto broker creating a problem because a blocked order was creating a backlog triggered an atmosphere of panic. This sparked turmoil and panic in the asset class, and speculation began to circulate whether another LUNA scenario had emerged.
BTC price saw two strong fundamental pressures, thus pushing the price action to the downside and dropping below $24,000. With the monthly close below S1, the only trade possible at the moment is a retracement to that S1 followed by a rejection followed by a bearish breakout in search of support. The closest support is at $19,036, which means the $20,000 barrier might give in.
On the other hand, if a rebound and the bulls bounce off the current lows, a monthly S1 and a back close above $24,000 could quickly open more room on the upside. This would mean a return to $28,695 and with it the deletion of the move from last weekend. The Fed and BOE could help calm the markets by changing their tone on inflation and proving they’ve done an excellent job of keeping inflation under control, which could trigger a possible return to $30,000 next week.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.