Despite still under pressure, Bitcoin and other cryptocurrencies were holding steadily above the lows set during a severe selloff over the previous two weeks on Monday. Over the past 24 hours, the price of Bitcoin has been hovering just above flat at $21,400. The biggest digital asset hit its lowest point this month, around $18,000, marking the lowest level since 2020. The decline of bitcoin coincided with issues in the stock market, but it was also made worse by forces specific to the world of digital assets, such as the liquidation of leveraged positions and issues among cryptocurrency financial service providers.
Jeffrey Halley, an analyst at broker Oanda said “Thanks to the rebound in U.S. stock markets and the fall in U.S. yields, Bitcoin looks to have traced out a low of around $18,000 for now.” Furthermore, he said, “From a technical perspective, a rise above $22,000 looks possible, extending onwards to $24,000.”
Cryptocurrencies like Bitcoin have shown to be strongly associated with other risk-sensitive assets, such as stocks, thus pressure on digital assets has increased as the S&P 500 entered a bear market this year. Even while Bitcoin continues to trade at less than a third of its all-time high set in November 2021, a recent stock market bounce, which appeared to be continuing on Monday, has helped crypto traders find some short-term relief.
Halley said, “In the medium-term, Bitcoin remains in the danger zone, and only a rise above $28,000 negates.”
Furthermore, a closer look at the BTC/USDT one-hour chart, the cryptocurrency has failed successfully break the $21,500- $21,900 zone. A failure to hold properly above this psychologically sensitive zone (for the time being) would lead to a short-term bearish pattern which would make BTC retest lower support zones
The second-largest digital asset, Ether, decreased 1% to $1,230. The Ethereum blockchain network’s underlying token, which started the month above $2,000, dropped as low as $900 by June 18. The majority of smaller cryptos, or altcoins, were losing money. Memecoins, which were originally intended as online jokes, were more divided.
Featured Image: Megapixl © AlexanderSikov
