American stocks fell on the opening of Wall Street July 14th, while Bitcoin managed to avoid losses but investors remained cautious.
Bottom: Analysts weigh in
The S&P 500 and Nasdaq Composite Index both fell by about 1.8% at the time of writing as Wall Street opened in the red.
Although the largest cryptocurrency’s correlation to stocks declined to its lowest levels of 2022 so far, Bitcoin was still able to hold its own.
BTC/USD transactions above $20k Source: TradingView
According to data from TradingView, BTC/USD traded at around $20,000 per day.
However, few were prepared to declare that hodlers’ worst days were behind them.
Aksel Kibar summarizedTo his Twitter Followers:
“This has been a weak rebound so far. Another possible bearish continuation…”
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Due to a confluence of macroeconomic factors, well-known economist and analyst Michael Suppo anticipated a lower low than June’s around $17,500 levels.
“No way is $17.5k the bottom for Bitcoin,” he noted.
Many people assumed that the higher levels of support would prevail before any retests of the multi-month lows.
We’ve been following 13.7K for 10 months. #BitcoinWe must lose 19.5K to reach the 13.7K mark.
So far, 19.5K has held really well. Although the bottom may be in, or is very near to being in, most people will not reach it while they wait for lower prices.🤓 pic.twitter.com/AJF5ye0ntn
— Steve Courtney ~ Crypto Crew University🤓📈 (@CryptoCrewU) July 12, 2022
Trading Volume Tumbles To Lowest Since 2020
The exchange-wide spot volumes and derivative volumes fell by more than 15% to $4.2 trillion in June, which is the lowest point since January last year. According to CryptoCompare statistics, spot volumes dropped 28% to $1.41 Trillion in June. Bitcoin’s lowest point since December 2020.
In the last month of 2018, the amount traded in derivatives fell by 7%, the lowest since July 2021. The cryptocurrency market is dominated by derivatives, which account for over half the market.
Source: Cryptocompare
The market watchers believe that the pattern is reasonable in light of dips in Ether (and Bitcoin) which plunged over 70% from last year’s highs. Bitcoin’s value fell 15% from June 18th to $17.599, the lowest since late 2020.
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Featured image taken from Pixabay. Charts from TradingView.com