Bitcoin (BTC), which suffered further losses on June 12, was fueled by a continued sell-off.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Nalyst compares 1929’s risk asset to a ‘pump’
Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD hit lows of $27.150 for the sixth consecutive day of decline.
The pair were at risk of losing their losing streak with hours remaining before the weekly close. They had previously experienced a record nine consecutive weeks of red candles.
BTC/USD had to increase by $2,000 over the current spot price of $27,400 in order to avoid this outcome.
BTC/USD 1-week candle chart (Bitstamp). Source: TradingView
Analysts were concerned that support levels would not change the mood due to the lack of liquidity during weekend “out-of hours” trading. They feared that there would be a retest May’s 10-month lows.
“Well, Bitcoin could not hold $29.3K and started falling more. In his June 11th BTC update, Michael van de Poppe (Cointelegraph contributor) wrote that he was curious to see how the $28.5K region will react.
“If that fails, $26/24K is on the cards.”
While cryptoassets continue to talk about “capitulation,” others focused their attention on the fate and synchronization of stock markets. Mike McGlone, a senior commodities strategist at Bloomberg Intelligence, believes that risk assets could have experienced peak exuberance over the past two-years.
He stated to Twitter followers that “if the stock market continues to go down, virtually all will have peaked,”
“Just some normal regression can feel like a crash, and the 2020-21 risk assets pump may go down history like 1929 or 1999.”
Bitcoin traded at close to $27,000 for the day, the lowest level since the Terra LUNA implosion.
Many people were asking how to find the true macro-price floor for Bitcoin.
“If the price is low at 20ks, most people in CT will be asking for 10k or less. “That will be the lowest confirmation,” Il Capo of Crypto, a popular Twitter account, stated.
Cointelegraph reported that guesses about a generational bottom ranged from $27,000 to a grimly bearish 14,000, or even higher.
Ethereum makes it possible to cross the price threshold for key realized prices
Altcoins were, however, more fragile.
Related: Bitcoin price could be at its lowest weekly close since 2020, as inflation creeps markets
The top ten most popular cryptocurrencies by market capital revealed greater daily losses than Bitcoin/USD and some losing over 10%.
Ether (ETH), which is the largest altcoin fell by around 7% during the day. This brought spot price below realized prices for the first time since May.
The real price is the price at which all tokens last traded. ETH was at greater risk of panic-based capitulation due to its breach. Bitcoin’s realized value, which was around $24,000, was barely touched by the May dip.
Glassnode, an on-chain analytics firm, commented on the accompanying chart, “With the price drops over the weekend the Ethereum market have fallen below the $ETH realized Price of $1,781″.
This means that the market has an average unrealized loss (-18.4%) With an unrealized loss at -39.6%, the Realized Price for ETH 2.0 deposits is $2,404 higher than its actual price.
Annotated chart showing the Ethereum realized price compared to USD/ETH. Source: TradingViewcom. You should do your research before making any investment or trading decision.