Bitcoin (BTC) saw further losses on June 12 as thin weekend trading volume fueled continued selloff.
The analyst compared the risk asset ‘pump’ to 1929 . from
Data from Cointelegraph Markets Pro and TradingView shows BTC/USD traded as low as $27,150 for the sixth day in a row.
With the hours until the weekly close, the pair was in danger of resuming the losing streak, which had previously seen a record nine consecutive weeks of red candles.
In order to avoid that outcome and hold another “green” pass, BTC/USD needs to gain above $2,000 from the current spot price, which stood at $27,400 at the time of writing.
With thin liquidity failing to turn the mood for support levels during the weekend’s “out-of-hours” trading, analysts feared a retest of May’s ten-month low was about to take place.
“Well, bitcoin couldn’t hold $29.3K and started falling some more. Let’s see how the $28.5K area is going to react,” Cointelegraph contributor Michael van de Pope wrote In his latest BTC update on June 11th.
“If that doesn’t hold up, $26/24K on the cards.”
Amidst the continuing discussion of “capitulation” in crypto, others focused on the fate of highly correlated stock markets. Mike McGlone, senior commodity strategist at Bloomberg Intelligence, said the past two years have already seen extreme enthusiasm in riskier assets more broadly.
“If the stock market continues to fall, virtually everything will peak,” he Told Twitter followers.
“Just some normal reversal could feel like an accident and 2020-21 risk asset pump going down in history like 1929 and 1999.”
Meanwhile, bitcoin traded close to its May “mini” capitulation event at day’s low near $27,000, as a day of turmoil hit the ground at the hands of the Terra Luna implosion.
For many, it was thus a question of where the real macro price floor for bitcoin might lie.
“If the price reaches the low 20k, you will see most CTs calling at 10k or so. That would be a confirmation of the bottom,” said crypto’s popular Twitter account Il Capo. argued,
As Cointelegraph reported, there are speculations that a generation bottom range is in the range of $27,000 to $14,000 or even lower.
Ethereum Makes Major Realized Price Crossover
Meanwhile, for the altcoin, the picture was more uncertain.
RELATED: Bitcoin Price Threatens to Close Weekly to Lowest Since 2020 as Inflation Shakes Markets
A look at the top ten cryptocurrencies by market cap showed huge daily losses against BTC/USD, with some losing more than 10%.
Ether (ETH), the largest altcoin, fell nearly 7% on the day, falling below real value for the first time since May.
Actual value refers to the combined value at which each token last moved, and breaching this puts ETH at risk of panic-based capitulation. The actual price of bitcoin, around $24,000, was barely touched during the May drop.
“Ethereum market has fallen below the actual price of $ETH at $1,781 as the week ended with a price drop,” said on-chain analytics firm Glassnode. commented on the attached chart.
“This means the market is holding an average unrealized loss of -18.4%. The actual value of the ETH 2.0 deposit exceeded $2,404 with an unrealized loss of -39.6%.”
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