After climbing to a high of $ 23,000 in the early trading hours of June 16, the price Bitcoin gradually tended to decrease due to decreasing trading volume, and returned to $ 20,765 amid the continuous sell-off in the traditional market.
The market has prospered on Wednesday (June 15) after Fed announced the biggest rate hike since 1994, however, it has now wiped out gains and reversed a downward trend on Thursday.
For the first time since January 2021, the Dow Jones Industrial Average fell 30,000 points as investors worried that the Fed's hawkish approach to curbing inflation would lead to a recession.
At the end of the session, the Dow Jones Industrial Average fell 741 points (about 2,42%) to 29,927 points, while the S&P 500 index dropped 3,25% to 3,666 points. Nasdaq Composite lost 4,08% to 10,646 points, touching the lowest level since September 2020.
The major indexes have fallen deeply this week. The S&P 500 and Nasdaq Composite fell 6.1%. The Dow Jones lost 4.7% this week, heading for its 11th weekly loss in the past 12 weeks.
The S&P 500 and Nasdaq Composite both fell deeply, closing 24% and 34% down from ATH levels, respectively, as inflation and concerns about slowing economic growth weighed on investors. Meanwhile, Dow Jones has also dropped 19% compared to the ATH recorded on January 5, 2022.
Thursday's session marked the first time the Dow Jones had dropped 30,000 points since January 2021. The index first surpassed this mark in November, as fiscal stimulus boosted the overall market rally and sent the major indexes to record highs.
Gold prices rose 1% on the same day in a volatile session as the dollar fell sharply on the prospect of stronger policy tightening by the US Central Bank, bringing some safe-haven demand back to gold. At the end of the session, the spot gold contract increased 0.9% to 1,849 USD/oz. Gold futures jumped 1.7% to $1,849 an ounce.
The dollar's 1.6% drop from recent two-decade highs also increases gold's appeal to foreign buyers.
Inflation and economic uncertainty are often supportive of the gold market, however, high interest rates increase the opportunity cost of holding gold, thus not yielding a return.
Oil prices also rallied on Thursday after the United States announced new sanctions on Iran, and as energy markets focused on supply concerns that have sent oil prices soaring this year. Ending the session, Brent oil contract increased $ 1.3 (equivalent to 1.1%) to 119 USD/barrel. WTI oil contract added $ 2.27 (about 2%) to 117 USD/barrel.
Bitcoin and Altcoins
Analyst Rekt Capital posted the following chart highlighting the movement behavior of BTC close to the 200-week moving average (MA) to give a macro view of the journey that Bitcoin has performed over the years and how its past can provide a prediction of the current market setup.
“If we continue to maintain the 200-week MA (orange) as support and the 200-week EMA (black) as resistance, then BTC could form an Accumulation Range here, like in 2018. This will allow consolidation for many months even through to December 2022.”
Chart BTC/USD – 1 week | Source: Rekt Capital
Trader Altcoins If this is the scenario, then there is no need for traders to rush to accumulate, Sherpa said BTC. Sherpa has also drawn up a chart that highlights the length of time BTC has spent in previous periods of accumulation.
BTC/USD Chart – 1 week | Source: Altcoins Sherpa
The longest accumulation period on record is 287 days, shown in the chart above. Other examples provided include 133 cumulative days from November 2018 to April 2019 and 63 cumulative days from May 2020 to July 2020.
Altcoin Sherap adds:
“Most likely users will have plenty of time to bottom out during the accumulation phase. Bitcoin needs some time to form a bottom and traders should probably just stay out of the market or get in a little bit, rather than start. knife fall".
Trader Nebraskangooner offered a more positive take on Bitcoin’s latest developments, providing the following chart noting that the market “has reached a lower Fibonacci level.”
“Let's see if BTC can close daily above the strong resistance and then we will have a chance towards $ 25,000 and maybe even the $ 30,000 area. For the first time in months, we may finally be ready for the recovery everyone has been anticipating since the market hit $ 40,000.”
BTC chart/USDT – 1 week | Source: Nebraskangooner
Another trader, going by the pseudonym TAnalyst, spotted a potential bullish signal on the chart for BTC, and posted the following chart highlighting recent lows for the relative strength index (RSI) 1000.
“Bitcoin is in the bottom days, before the bulls started a strong rally, today, RSI (1000) went below 50, touched 49.91″.
BTC/USD – 1 day chart with RSI 1000 | Source: TANALYST
Based on the history of the RSI 1000, when it drops below 50, Bitcoin price could soon start to bounce higher.
Trader IncomeSharks has summary About the current state of the Bitcoin market and the confusion it is causing traders are as follows:
“Bitcoin is at a price where shorting doesn't make sense anymore. But this price is still very risky. Unless using strict risk management, this is an area where traders should only buy spot. Users can wait for a trend to develop to start trading again.”
In the past 24 hours, along with Bitcoin falling below $ 21,000 altcoin markets are also in the red, with many tokens recording double-digit declines. In there ThorChain (RUNE) and ApeCoin are the two tokens with the strongest decline, losing 18,59% and 16,79% respectively in the last 24 hours.
Ethereum also recorded a sharp drop of 13.5%, bringing the total decline in the past 7 days to nearly 40%. Currently the largest smart contract token is trading around $ 1,074.
Meanwhile, the overall market capitalization has also fallen below the $900 billion threshold once again, stopping at $888 billion at the moment.