The crypto market is approaching one of its worst months as June draws to a close, with the crypto market capitalization once again approaching the $1 trillion mark due to renewed flexibility among buyers.
Bitcoin and Ether, the top two cryptocurrencies by market cap, are currently trading around $20,850 and $1,190 respectively. The major crypto asset has intraday highs at $21,469 and $1,245, both of which have managed to stay above key support levels established over the week.
But where do the two cryptocurrencies go from here? At what level should investors watch for downside?
Analyst says 200-week moving average is critical
According to Bloomberg analyst Joanna Osinger, key price levels lie at the 200-week moving average. For Bitcoin, it is currently near the $22,000 level, while for Ether, it is near the $1,100 level.
However, “a round of $20,000 for bitcoin and $1,000 for ether is still a big deal,” she said during Monday’s Bloomberg Markets & Finance performance,
These levels provide important support areas for BTC and ETH respectively in terms of fresh selloff. If BTC/USD and ETH/USD stay above these areas, buyers can see fresh momentum above their 200-week moving average.
On the downside, cryptocurrency analyst Recht Capital says that the price of BTC could drop to around $16,000.
Last week, #B T c 200-week MA . Buy-side volume printed on the same as the bottom of the 2018 Bear Market
However, during the formation of the 2018 bottom, buyer volume was preceded by an additional -20% drop.
If $BTC Soon there was an additional -20% drop, the price was ~$16400. will reach#crypto #bitcoin pic.twitter.com/7ZHFT70xmC
— Rect Capital (@rektcapital) June 27, 2022
For Ether, Il Capo says a drop to $700-$800 is possible.
Volume decreasing at resistance, and looks like a corrective move.
Next Support: $700-800 https://t.co/MajQe7R2ms pic.twitter.com/hZpkmKjjgj
— Capo of Crypto (@CryptoCapo_) June 27, 2022