There are photos everywhere of the Titanic falling. For the well-informed, this is a reference to Bitcoin’s current state.
There was supposed to be a good ounce of jubilation in recent days when the world’s most popular crypto showed signs of renewed vigor and reclaim a price level that would have eased the fears of many but, nope.
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June Not A Good Month For Bitcoin
Coingecko’s data showed that Bitcoin was below $20,000 Thursday. It fell to $19.112 on Thursday. This is an increase of 4.5 per cent over the previous week. The most popular cryptocurrency fell below $20,000 for the third time in as many weeks, extending the crypto market’s June slump to the very end of the month.
Bitcoin’s price has entered a consolidation phase and appears to be in a halting trend after a significant shakeout at $17,000. It is expected to offer substantial support as it includes the 2017 high and could trigger a quick recovery to $30,000 area.
Multiple variables contribute to Bitcoin’s price fluctuations, and as long as these factors persist, this unpredictability and price variation will persist.
Three Arrows Collapsing Hit Bitcoin
As fears of contagion grew following the collapse of Three Arrows Capital, popular Defi tokens like Solana or Avalanche plummeted more than Bitcoin.
BTC’s price has been below $20,000 three times in the past month: Thursday night, Tuesday morning and just two weeks ago. This was after the cryptocurrency asset that is most desired broke through the highly-monitored threshold, having fluctuated below $25,000 for five consecutive days.
BTC Total Market Cap at $364 Billion on the Daily Chart | Source: TradingView.com
Bitcoin’s reasonably stable trading after hitting a low of $17,560 on June 18 spurred confidence that the damaged cryptocurrency market was preparing for a turnaround.
Deutsche Bank Is Bullish
Nevertheless, the sector remains under pressure because of the central banks’ efforts to drain liquidity and a succession of high-profile cryptocurrency collapses that have eroded investor trust.
It is now a vastly different market than it was at the beginning of 2020. The record-breaking price of $20,000 was set on December 16, 2018. At the beginning of this year, an 11 percent decline in Bitcoin’s value to $42,000 was referred to as a “bloodbath week.”
Despite Bitcoin’s price decline of roughly 60 percent over the previous 90 days – and in the wake of this downturn – Deutsche Bank’s analysis indicates that BTC’s price might still achieve a 30 percent rally above its present level by the end of the year.
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Featured image Fast Company Chart from TradingView.com