BTC price falls below $20K for the first time since 2020, ETH dips

18-Jun-2022 By: Rohit Tripathi

Price of bitcoin drops below $20,000 for the first time.

BTC price falls below $20K for the first time

since 2020, ETH dips under $1K

Bitcoin falls below its previous cycle high for the first time in history, resulting in a painful day of losses.

BTC/USD has fallen below $20,000 for the first time since December 2020, according to data from Coingabbar, with press-time lows of $18,732.

Crypto markets faced the brunt of a sell-off that began after surprise Consumer Price Index (CPI) results last week, as anxieties heightened following the US Federal Reserve's remarks on the inflation forecast.

Bitcoin also made a lifetime first by falling below the previous halving cycle's peak for the first time in its existence, losing the psychologically critical $20,000 level.

Until recently, the largest cryptocurrency has dodged such a shift, leaving it to altcoins, most notably Ether (ETH) earlier this week, which has now fallen below $1,000 for the first price since January 2021.

Commentators ascribed the recent decline to liquidity issues at investment vehicle Three Arrows Capital (often referred to as 3AC), as well as previous issues with FinTech protocol Celsius and the wider macro climate.

zhu su, a co-founder of Three Arrows, said the company was "in the process of speaking with relevant parties and totally dedicated to sorting this out," but did not elaborate on the issues.

The sharp drop below $20,000 occurred over the weekend when poor order book liquidity exacerbated volatility.

Is this a year for bears unlike any other?

According to statistics from Coingabbar, BTC/USD lost 32 percent in the first two weeks of this month, making June 2022 the worst June on record.

At the time of writing, the pair was trading about 57% lower year-to-date and was over 71% lower than last November's all-time highs of $69,000.

According to Coingabbar, historical trends imply that the typical drawdown objective for bear markets is 80-84.5 percent, putting BTC/USD between $11,000 and $14,000.

Popular trader and analyst Rekt Capital tweeted that BTC still requires more volume and volatility than it does now to meet volume levels at prior Bear Market Bottoms at the 200 MA, as part of his ongoing examination of Bitcoin's 200-week moving average, a critical lifetime support line.

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