Uncertainty destroys both long and short positions on the path to $20,000, wreaking havoc on short-term traders and speculators.
Bitcoin price hits 18-month lows
Data from CoinGabbar showed BTC/USD fell to $20,816, the lowest level since the week of December 14, 2020.
After the June 13 Wall Street morning bell, a sell-off that began before the weekend accelerated, with Bitcoin and altcoins plummeting in lockstep with US stocks.
The S&P 500 fell 3.9 percent, while the Nasdaq Composite Index fell 4.7 percent, as investors awaited significant remarks from the US Federal Reserve on its anti-inflation stance.
However, crypto took the worst of the downturn, with BTC/USD losing 22.4 percent from the start of the week to the time of writing.
According to a trading firm, the pair was also "uncomfortably close" to hitting the $20,000 barrier, which would match the pair's all-time high from its previous halving cycle, something that has never happened before.
In a message to Telegram channel users, sources cited inflation and the possibility of insolvency at FinTech protocol Celsius as reasons for the sell-off.
"Since the LUNA debacle, we've been concerned about the collapse of a major credit player. The market is now concerned about the effect and spread of insolvency if Celsius goes bankrupt "It clarified.
The market is watching for liquidation levels of 1,150 in ETH, 0.8 in stETH/ETH, and 20,000 in BTC. We're getting pretty close.
When it came to predicting the BTC price floor or whether major trendlines would hold as support, all bets were off for other analysts.
The 200-week simple moving average (SMA) of around $22,400 had not been supported by considerable volume interest, leaving the door open for a test of lower levels, according to a trading platform.
He told Twitter followers that “BTC has touched the 200-week MA, but the volume flood isn't as big as in prior Bear Market Bottoms created at the 200 MA.”
On low timeframes, the 200 SMA looked to be serving as resistance rather than support at the time of writing.