Bitcoin (BTC) came within $1,000 of its previous cycle all-time highs on June 14 as liquidations mounted in the crypto markets.
Bitcoin Price Hits 18-Month Low
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hit $20,816, on Bitstamp, its lowest since the week of December 14, 2020.
A sell-off that began before the weekend intensified after Wall Street’s opening bell on June 13, with Bitcoin and altcoins falling in step with US stocks.
The S&P 500 ended the day down 3.9%, while the Nasdaq Composite Index lost 4.7% ahead of key comments from the US Federal Reserve on its anti-inflation policy.
The worst of the rout was reserved for crypto, however, and with that, BTC/USD is down 22.4% since the start of the week to the time of writing.
The pair was also “uncomfortably close” to breaking the $20,000 mark, trading firm QCP Capital noted, marking the all-time high of its previous halving cycle, which had never happened before. .
In a circular to subscribers to the Telegram channel, QCP flagged both the topic of inflation and the potential insolvency of fintech protocol Celsius as the driver of the sale.
“We are expressing concern about the collapse of a major credit player since the LUNA explosion. The market is now panicking about the impact and contagion if Celsius becomes insolvent,” he explained:
“Some key liquidation levels the market is looking for are 1,150 in ETH, 0.8 in stETH/ETH, and 20,000 in BTC. We get closer uncomfortably.
For other analysts, all bets were off when it came to guessing the floor price of BTC or if the key trendlines would act as support.
Deadly red candle, deadly green candle.
— Michael van de Poppe (@CryptoMichNL) June 13, 2022
Rekt Capital warned that the 200-week simple moving average (SMA) at $22,400 was not accompanied by significant volume interest, leaving the door open for a test of lower levels.
“BTC reached the 200-week MA, but volume inflow is not as strong as in previous Bear Market Bottoms formed at the 200-week MA,” he said. Told Twitter Followers:
“But a downward evacuation below 200 MA is occurring and perhaps that evacuation needs to occur this time to inspire a strong influx of volume.”
At the time of writing, the 200 SMA seemed to act more like resistance than support on short timeframes.
Altcoin Futures Index Shows Full Retracement Strength
On altcoins, Ether (ETH) fell 40% below the previous week’s high to approach the $1,000 mark.
Related: Lowest Weekly Close Since December 2020 – 5 Things To Know About Bitcoin This Week
If that were to break, it would be the first time ETH/USD had traded in triple digits since January 2021. As Cointelegraph reported, the pair had already broken through its peak of $1,530 against to Bitcoin’s previous halving cycle.
Across altcoins, there was little reason to be happy about this downward trend, Rekt Capital argued, pointing to the declining alt presence relative to Bitcoin.
Indeed the green support of the HTF lost in May has since turned into new resistance
The Altcoin index has fallen -50% since
The index has since reached a new monthly level (orange) which could already show weakness
—Rekt Capital (@rektcapital) June 13, 2022
Meanwhile, in a sign of the pain that plagues all crypto traders, data from on-chain monitoring resource Coinglass confirmed inter-market liquidations exceeding $1.2 billion in just 24 hours.
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