Bitcoin Threatens Lowest Weekly Close Since Late 2020 as Low Weekend Liquidity Exacerbates Existing Weakness.
Bitcoin (BTC) saw further losses on June 12 as thin weekend trading volumes fueled a continued selloff.
Data from CointeleGraph Markets Pro and TradingView showed that BTC/USD hit lows of $27,150 for its sixth straight day of downside.
Analyst Compares ‘Rise’ in Risk Assets to 1929
In the closing hours until the weekly close, the pair was in danger of resuming the losing streak, which had previously seen a record nine weeks of red candles in a row.
To avoid that outcome and put in a second “green” close, BTC/USD needed to gain more than $2,000 from the current spot price, which at the time of writing was $27,400.
With support levels not changing the mood thanks to thinner liquidity during weekend “after-hours” trading, analysts feared a retest of May’s ten-month lows was due.
“Well, Bitcoin failed to hold $29,300 and started to drop a little bit more. Looking to see how the $28,500 area will react,” Cointelegraph contributor Michaël Van de Poppe wrote in his latest BTC update on June 11: “If that doesn’t hold up, $26,000/24,000 on the cards.”
Amidst the ongoing talk of “capitulation” in crypto assets, others focused on the fate of highly correlated stock markets. Mike McGlone, senior commodity strategist at Bloomberg Intelligence, risk assets more broadly may already have seen peak exuberance in the past two years.
“If the stock market continues to go down, pretty much everything will have peaked,” he told Twitter followers.
“Just a normal reversal can look like a shock and the 2020-21 risk asset pump can go down in history like 1929 and 1999.”
Meanwhile, at daily lows near $27,000, Bitcoin traded closer to its “mini” May capitulation event since that day of turmoil took place at the hands of the Terra Luna implosion.
For many, the question was therefore how to know where the true macro price for Bitcoin might lie.
“If the price hits low 20,000, you’ll see most CT asking for 10k or even lower. That will be the bottom confirmation,” argued the popular IL Capo de Crypto Twitter account.
The guesses for a generational fund range as high as $27,000 to a level of $14,000 or even lower.
Ethereum Makes Key Realized Price Crossover
Meanwhile, for altcoins, the picture was more precarious.
A look at the top ten cryptocurrencies by market cap revealed daily losses heavier than BTC/USD, with some shedding more than 10%.
Ether (ETH), the largest altcoin, fell around 7% on the day, taking the spot price below the realized price for the first time since May.
Realized price refers to the combined price at which each token last moved, and its violation puts ETH at greater risk of panic-based capitulation. Bitcoin’s realized price, at around $24,000, was barely touched during the May crash.
“With the price decline over the weekend, the Ethereum market has fallen below realized price by $1,781,” GlassNode commented on an accompanying $1,781 chart.
“This means that the market has an average unrealized loss of -18.4%. The realized price of ETH 2.0 deposits is higher at $2,404, with an unrealized loss of -39.6%.”
By Audy Castaneda
