The Bitcoin Plunge: What Happened?
On June 14, Bitcoin (BTC) found itself flirting dangerously close to the $20,000 mark, whispering sweet nothings to its previous cycle all-time highs. For anyone who remembers ‘the highs,’ the dip was enough to create a serious case of the jitters. BTC/USD descended to $20,816—its lowest level since December 2020. Sounds familiar? It’s like déjà vu, but in a much less desirable way.
The Wall Street Effect
In a classic tale of ‘misery loves company’, Bitcoin’s turmoil mirrored the stock market. As the S&P 500 fell by 3.9% and the Nasdaq Composite took a bruising with a 4.7% drop, Bitcoin and the altcoin party quickly turned into a somber affair. The sell-off snowballed after the June 13 Wall Street open, proving that the crypto markets are still susceptible to traditional finance hangovers.
The Liquidation Avalanche
With over $1.2 billion in liquidations in just a single day, it wasn’t just Bitcoin that felt the heat. It was an all-out liquidation circus, with traders sweating bullets and altcoins performing a spectacular ‘hold my beer’ act—slumping significantly. As a result, Bitcoin wasn’t the only one who had to bear the brunt of this crypto smackdown.
Analysts Weigh In
QCP Capital has been waving its warning flags for a while, pointing to inflation woes and impending insolvency issues at some fintech platforms as the culprits behind the sell-off frenzy. They flagged key liquidation levels, like 1,150 in ETH and a hair-raising 20,000 in BTC, indicating a scary game of financial chicken was unfolding.
Support Levels: A Fragile Lifeline
As analysts grabbed their crystal balls to predict Bitcoin’s price floor, some couldn’t help but grimace. The 200-week simple moving average (SMA) stood at $22,400 but lacked sufficient volume interest—meaning if it weren’t careful, it could slip through the cracks. Could it be that this recession’s biggest victim is not a stock, but an overhyped cryptocurrency? Only time will tell.
Altcoin Fiasco
If you thought Bitcoin’s saga was wild, look no further than the altcoin realm. Ether (ETH) fell near the ominous $1,000 mark, 40% lower than the previous week’s high. This descent raises eyebrows as it would mark the first appearance of three-digit prices since January 2021. Altcoins, meanwhile, continue to struggle amidst plunging values and market weakness, reminding us all why we should ‘never put all our eggs in one basket.’
