Bitcoin sank to $19,000 from the low highs of $21,000. But crypto companies believe the worst is behind them. June was the most painful month for the crypto industry as Bitcoin fell nearly 40% to mark one of its worst calendar months on record.
Data shows that a number of BTC price and on-chain metrics are reaching levels similar to those seen during previous market bottoms. Moreover, history shows that periods of weakness can drag on for months on end. At the time of writing this article, Bitcoin was trading at $19,921 after having slipped 3.38% in the last 24 hours. Ethereum is flashing red like a siren as it desperately tries to hold onto the crucial $1,000 mark. It lost nearly 6% of its value in the last 24 hours and is changing hands at $1,086.
The altcoins have also dipped. Solana lost 5.75% and is trading at $33.66. Cardano is down by 3.04% and XRP lost 3.47%. Shiba Inu is the biggest loser. The meme coin lost 6.27 of its value in the last 24 hours and Dogecoin is also down by 6%. The broader crypto market has recorded losses.
Experts believe the strength of the US dollar has been weighing on cryptocurrencies. Factors like rising inflation and falling economy are also having negative impact on crypto. Bitcoin, against the backdrop of a potential economic slowdown, is trying to form a local bottom around the 2017 cycle high near $20,000. This is the last structural support on the high timeframe Bitcoin chart. It signifies the first time in Bitcoin’s history that its price has fallen below the all-time high set during a previous bull market cycle. Delphi Digital says if Bitcoin fails to hold support near the crucial $20,000 mark, it would slip around to $15,000 and further to $9,000 – $12,000, that is if the level failed to hold.
The popular crypto fell about 85% from peak to trough during each of the previous two major bear markets. If a similar dip occurs, it would put Bitcoin at $10,000 – marking another 50% drawdown from the current levels. There would be a fall in line with the 2018 and 2019 price range.