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Bitcoin and Ethereum: Such a dramatic scenario

  • The bitcoin price dropped to its 18-month low of $ 2,140 this morning.
  • The price of Ethereum fell to $ 1,014, losing about 45% of its value since the beginning of the month when the price of Ethereum was at $ 1,954.
  • One of the world’s largest hedge funds for cryptocurrencies, “Three Arrows Capital”, launched risk-averse titles on Wednesday, which is why the entire cryptocurrency continues to fall with it.

Bitcoin chart analysis

The bitcoin price dropped to its 18-month low of $ 2,140 this morning. The pressure on Bitcoin is too great before the Fed decides to increase interest rates. The price has managed to move from the bottom and is now at the $ 21,380 level, and we are now following the way the consolidation will take place on the chart. Investors in risky assets could easily give up bitcoin, which would be a disaster for the price.

In such a scenario, the price could slip up to $ 10,000. The crypto market’s capitalization fell below $ 1 trillion, and if the price of bitcoin dropped to $ 10,000, it would be a disaster. We need to move beyond this critical zone to the $ 25,000 level for the bullish option. We are not sure here either because the bitcoin price must return above 30,000 dollars to form a stable bottom and support continued recovery.

Bitcoin chart analysis

Ethereum chart analysis

The price of Ethereum fell to $ 1,014, losing about 45% of its value since the beginning of the month when the price of Ethereum was at $ 1,954. Since then, the agony for Ethereum has started, and on June 11, the price broke its support to $ 1,700. Since that day, the price has been in a terrible retreat with no signs that we can see a stop at a level. The following potential levels of support are $ 900 and $ 800. For the bullish option, we need a new positive consolidation and a price return above the $ 1300 level. At that level, the price would form the next bottom on the chart, and we would have a good basis for a potential recovery.

Ethereum chart analysis

Market overview

One of the world’s largest hedge funds for cryptocurrencies, “Three Arrows Capital”, launched risk-averse titles on Wednesday, which is why the entire cryptocurrency continues to fall with it. 3AC is trying to survive after cryptocurrency website The Block announced it could face illiquidity, citing close sources. Among the big losses from high-borrowing hedge fund positions, one of the most significant and initial causes of what appears to be generational market destruction were positions in Terra’s LUNA – now converted to Luna Classic (LUNC) – valued at nearly $ 600 million, has become almost worthless. Despite tweeting to Zhu Su that they are “fully committed to solving this,” severe 3AC problems are another step in the process of what appears to be a crypto-bubble explosion that could give room for a new era of this still young financial ecosystem.



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