Bitcoin price is up by 7.74% but still shy of the crucial $20,000 mark. Ethereum has managed to crawl back above the $1,000 mark gaining 12.28%. The weekend saw low-liquidity trading conditions. The top two cryptocurrencies managed to recover some losses, but there is a sense of déjà vu.
The $20,000 mark has proved to be a strong resistance level for the popular Bitcoin. This has formed an all-time high for BTC for three years from December 2017 to December 2020. This level was also the first time that Bitcoin retreated under a previous halving cycle’s all-time high. Seasoned market participants remain optimistic about the recent price action. It corresponded with historical bear market patterns.
At the time of writing this article, Bitcoin was trading at $19,905 as per data from CoinMarketCap. Ether was changing hands at $1,072. The altcoins have recorded significant gains. Solana is up by 6.42%, Polkadot 5.53% and XRP 4.98%. Meme coin Dogecoin is the biggest gainer. It’s up by nearly 13%.
Jordi Alexander, CIO of Selini Capital, pointed out that willing buyers have been in cash waiting to buy cheap coins. He says they have to determine if they will get to buy another 20% lower. Alexander believes that if they wait too long, they will have to chase higher. Its to be seen whether the forced selling is wrapping up, or if distressed sellers still remain.
Holger Zschaepitz, a markets commentator, says a Bitcoin crash of 74% is not unusual. He highlighted that there have been four collapses, in history, in which BTC went down from the peak to trough by >80%. Rekt Capital, a market analyst, said that historically, Bitcoin tends to wick between -14% to -28% below the 200-week MA. The popular cryptocurrency has a wicked -21% below the 200 MA. It’s still within the historical range and not out of the ordinary in that respect.
Furthermore, data from Coinglass shows that June 2022 was shaping up to be the worst on record. It has surpassed even 2013 in terms of losses. It stated that over $7.325B in Bitcoin losses have been locked in by investors spending coins that were accumulated at higher prices.