Originally published on: June 20, 2022
As stocks face their “worst quarter ever,” Bitcoin is also struggling to maintain the $20,000 support level amidst a week of severe losses.
Just a few weeks ago, hitting $20,000 seemed impossible, but now it’s a harsh reality, bringing back memories of the all-time high from 2017 to 2020. The weekend saw Bitcoin drop to as low as $17,600, sparking concerns about network stability, particularly among miners.
As market sentiment hits record lows and fears of a macro market bottom loom, investors are on edge. Cointelegraph delves into the key areas of interest for Bitcoin holders amidst the price turmoil.
Despite the rough week, Bitcoin managed to close at $20,580, slightly above the critical $20,000 level. However, volatility remains high, with prices swinging wildly on lower timeframes.
Arthur Hayes, the former CEO of BitMEX, pointed out the impact of forced selling on Bitcoin’s recent plunge and subsequent recovery, emphasizing the uncertainty that still lingers in the market.
As Bitcoin faces pressure from hedge funds and macroeconomic trends, some analysts predict a further drop to $16,000 or even lower. The correlation between Bitcoin and stocks remains strong, adding to the bearish outlook for short-term gains.
Miners, once accumulation mode, have turned to selling, exacerbating selling pressure on Bitcoin. However, network difficulty is set to increase, suggesting that miners are still committed despite the challenging conditions.
As investors grapple with massive losses and panic selling, sentiment in the crypto market hits extreme fear levels, reminiscent of bear market lows. The Crypto Fear & Greed Index reflects the prevailing anxiety among investors, indicating a challenging road ahead.
In the midst of market turmoil, staying informed and cautious is key. Keep an eye on Bitcoin’s price action, miner activity, and overall market sentiment to make informed decisions in these turbulent times.
