BTC had recovered to trade around the $25,000 price level but was still looking bearish.
Bitcoin prices fell to $24,820 in early Asian trading on Thursday morning. It is the lowest value at which the asset has been traded since March 16, three months ago. $1,000 off the BTC price in less than an hour, resulting in a daily loss of 3.6%.
Bitcoin’s slide follows an announcement by the Federal Reserve that it had halted interest rate hikes in June. It is the first time that it has stopped after ten consecutive rate hikes since March 2022.
BTC has now broken out of its range-bound channel and has been in a gradual downward trend since mid-April. There is some support at current levels, but a further dip seems likely.
Bitcoin Takes the Back Seat
Longer-term charts are looking increasingly bearish, with some analysts predicting a “summer break” is in the offing.
On the derivatives side, there are billions in liquidations at lower levels, according to ‘Bleeding Crypto,’ so a breakdown of current BTC price levels could see markets stagnant quickly. On June 15, the Twitter user posted the following:
“There is $63.9 billion worth of liquidations at $24,200 and $52.3 billion at $21,800 but your Bull maxies want to convince you that “everything is ok” “we are about to go higher.”
Furthermore, the Bitcoin Fear and Greed Index has fallen to its lowest level since the market crash in mid-March. The sentiment indicator was reading ‘fear’ at 41 at the present time.
Analysis firm Santiment noted that trader sentiment is “officially at its most negative level since Covid crashed the markets in March 2020.”
On June 14, Santiment tweeted the following:
“With a combination of falling #crypto prices and rising concerns about Binance & Coinbase, trader sentiment is officially at its most negative level since #Covid crashed markets in March 2020. These situations are often ‘buy the dip’ opportunities.”
According to Santiment’s chart, Bitcoin’s social volume plummeted sharply last week. One possible reason behind this could be last week’s altcoin crash, which made altcoins a hot topic of discussion in the crypto community.
BTC sentiment weighted indicated that investors were not very confident in BTC, as the chart remained in the negative zone.
Elsewhere on Crypto Markets
Total market capitalization has fallen 3.6% on the day to $1.06 trillion as nearly $40 billion left the markets.
As usual, Ethereum and the rest of the altcoins are getting hit much harder than their big brother, Bitcoin. ETH had plunged 5.5% on the day to $1,648 most recently. The asset is now trading back to February resistance levels, which have now turned into support.
Altcoins were taking an even bigger hit, with daily losses of between 4% and 7% for most large-cap crypto assets.
Ripple, Cardano, Litecoin, Polkadot, Polygon, and Avalanche have returned similar percentages. Binance Coin, Dogecoin, Tron, Solana, and Shiba Inu are also in the red, albeit in a less painful way.
Small- and mid-cap alternatives have also suffered. Some of the most notable daily drops have come from Lido DAO, Arbitrum HBAR, XLM, and TONCOIN.
Overall, the total crypto market capitalization has declined by $40 billion and is close to breaking below the coveted $1 trillion mark.
By Audy Castaneda
