Bitcoin Breaks Below $20k, Moon or No Launch Next? | Daily News 20/6/22
Well, what a weekend for the whole crypto space! Bitcoin returned up back over the $20k level 🚀, after gaining about 17% from its lows of Saturday where BTC dropped to $17,600 🍑! We haven't seen Bitcoin hit these levels since December of 2020.
However, the fact that Bitcoin returned back to over $20k shows the resilience and optimism of the bulls even though there has been some pretty bearish news circulating the scene. Many are accumulating into the dump, seeing a correlation with the 2018 bear market. Let's dive in further:
Bitcoin is currently holding at just over $20k having recovered from its aptly named ‘relief’ rally back up. The heavy support level was broken early on Saturday where the price dipped to as low as $17,600, a level that is lower than Bitcoin’s last all-time high in the previous cycle 😧.
The BTC 1hr chart, just holding over $20k support - where do you think we’re going from here?
All eyes 👀 will be on how Bitcoin develops this week which will affect crypto as a whole. If Bitcoin can remain ☝️ above $20k and hold momentum, a bottom (even a temporary one for now) could potentially be found. However, if we head 👇 sub $20k, then it will be interesting to see if we break lower lows (circa $17,600), or if the market can still hold on to that bullishness. One thing is for certain, many are accumulating right now, whether it be to add to their dollar cost average strategy or simply believe we have found a complete bottom. Time (as always) will tell!
📰 Global macroeconomics is also something that is being looked at with open eyes, and many in the crypto universe are now starting to learn more about and adjust to how they analyse the market as this is something that certainly plays out and determines strength (or weakness) in the crypto market. Why? Well, let's take an example; if your mortgage rates increased and so did your everyday spending, it would be harder to consider investing into assets for the long term at the moment. Equally, the same would work for the opposite.
The crypto fear and greed index, taken from alternative.me
We also saw the Fear and Greed Index (click 👈 for more information) hit for the first time ever, all time lows of 6 on Saturday following the latest crypto drop. Now although on the surface this may seem bearish…consider some time with this infamous quote;
👁️🗨️ “Be fearful when others are greedy, be greedy when others are fearful” by Warren Buffet, businessman, investor and philanthropist.
This idea comes from understanding 🧠 market psychology. On average, investors are driven by emotions like fear and greed. If markets are rising, greed can keep people buying and hiking up prices, hoping for larger profits. This can ultimately lead to asset ‘bubbles’, which eventually pop. And of course the same mentality happens with the opposite side and effect!
🟢 Ethereum (ETH) followed Bitcoin to break support levels but actually recovered faster than BTC, currently up almost 13% in the last 24 hours (in comparison to just over 9% for Bitcoin). This has led to a fairly good bounce from most of the altcoins out there. Solana (SOL), Avalanche (AVAX) and Litecoin (LTC) are the top performers here, all hitting positive double-digit price changes in the last 24 hours.
Of course, this could all be a reactionary bounce to the drop earlier in the weekend, but it is showing again that there is still buying pressure 💪 and that we are quite possibly in a good zone to accumulate for the long term!*
*This is not financial advice, so please do your own research and be responsible when investing.
🏦 The S&P 500 closed its 10th week (out of the last 11) in the red 🔴, proving its well and truly sitting in bear market territory and the NASDAQ and QQQ, all showing similar trends. However, looking at the DXY (the Dollar Currency Index), we are seeing the 💲 finally start to weaken over the last few days. If this momentum continues, then we could see the general markets, and more specifically the crypto markets, start to build strength and recover once again.
Not a lot is scheduled to happen this week news wise, apart from a couple of public engagements from Fed Chair Jerome Powell that could really make an impact in the markets. If the dollar can keep its head down 💨 from the general news this week, we could get to see a fairly good recovery in the markets which would be welcomed.
👉 In this brief pause of breath in the market, why not take this opportunity to read up on our Academy 📖 articles, as there is always time to sit back and invest in ourselves as well as our portfolios. 💡 Check out the NAGAX Academy today!
- The cryptocurrency market dropped to levels lower than the highs of last bull market, indicating we could finally have found the bottom
- Bitcoin dipped below its psychological support of $20k over the weekend, but surged back over yesterday and today
- Ethereum and the rest of the alts have all performed well in recovery in the last 24 hours, but is it too sharp of a recovery?
- The U.S. Dollar is starting to show some relative weakness over the last few days, can this continue and bring some strength back to the crypto markets?
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