Bitcoin has lost 12% in the last 24 hours as a new cryptocurrency crash mixes with economic factors to bring only agony to holders. Bitcoin (BTC) starts the new week with a completely different vibe; BTC/USD closing at its lowest weekly close since December 2020.
The largest cryptocurrency is currently creeping closer to surpassing its ten-month lows from May after a night of losses into June 13. The weakness surprised only a few; last week’s shock inflation statistics from the United States triggered a chain reaction throughout risk assets. The poor weekend liquidity seemed to worsen the ramifications for crypto assets. This week’s macro suffering will continue.
The Federal Reserve should give an update on rate rises and the economy in general – the first formal policy update since the inflation statistics were released. While not overwhelmingly gloomy, the sentiment among analysts on Bitcoin and altcoins is one of resignation. Before recovering to the upside, there might be a time of unpleasant trading and holding conditions; which at least matches the historical patterns of Bitcoin’s cycles.
One of the aspects to consider is the “collapse” of Celsius looms, sending Bitcoin plummeting. It’s taken a long time, but Bitcoin has finally broken out of the tight range it’s been stuck in since last month’s ten-month lows. After rebounding off $23,800, BTC/USD spent weeks around the $30,000 zone, unable to make a move up or down. While this is not ideal for investors, the path appears to be obvious. Bitcoin has escaped more than one range, as trader and analyst Rekt Capital pointed out on June 12. BTC/USD is also departing a macro trading range that has been in place since the start of 2021 by exiting the zone at $30,000. As a result, Bitcoin’s most recent weekly close, approximately $26,600, was the lowest since December 2020.
A purchase support band was in place for around $25,000 on the accompanying chart, helping to limit 24-hour losses at 12%. The market was still unstable at the time, as the dust settled on a sobering reminder of what transpired during May’s plunge below $24,000.
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