September 26, 2022

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BTC price collapses to $20.8K as “killer” candles liquidate $1.2 billion

BTC price collapses to $20.8K as “killer” candles liquidate $1.2 billion

Bitcoin (BTC) came within $1,000 from all-time highs in the previous session on June 14 as liquidations escalated in the cryptocurrency markets.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

Bitcoin price hits 18-month lows

information from Cointelegraph Markets Pro And the TradingView BTC/USD showed up to $20,816, on Bitstamp, its lowest level since the week of December 14, 2020.

The sell-off that began before the weekend intensified after Wall Street’s opening bell on June 13, with bitcoin and altcoins falling along with US stocks.

The S&P 500 finished the day 3.9% lower, while the Nasdaq Composite fell 4.7% ahead of key comments from the US Federal Reserve on its anti-inflation policy.

It was the worst track booked for cryptocurrency, however, with BTC/USD losing 22.4% from the start of the week to the time of writing.

The pair was also “uncomfortably close” to breaking the $20,000 mark, trading firm QCP Capital noted, marking an all-time high from the previous one. half cyclewhich has not happened before.

In a post to Telegram channel subscribers, QCP identified both the topic of inflation and possible bankruptcy in fintech Celsius as driving the sell-off.

“We have been expressing our concern about the collapse of a major credit player since the LUNA explosion. The market is now in a panic about the impact and contagion if the percentile becomes insolvent,” he explained:

“Some of the key liquidation levels the market is looking at are 1150 in ETH, 0.8 in SETH/ETH and 20,000 in BTC. We are getting uncomfortably close.”

For other analysts, all bets are off when it comes to guessing the bitcoin price floor or whether it will. The main trend lines will prove as support.

Rekt Capital warned that the 200-week simple moving average (SMA) at $22,400 was not paired with a significant volume benefit, leaving the door open for a test of lower levels.

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“BTC has reached the 200-week moving average, but the flow of volume is not as strong as the previous bear market bottoms formed at the 200 MA,” Tell Twitter followers:

“But the bearish wicking is happening below the SMA 200 and that wicking may need to happen this time to inspire a strong volume flow.”

At the time of writing, the 200 SMA appears to be acting more as resistance than support on lower time frames.

BTC/USD 1-week candle chart (Bitstamp) with 200 SMA. Source: TradingView

Altcoin futures indicator shows full force of correction

On cryptocurrency, ether (ETH) to 40% below last week’s high Near the 1000 dollar mark.

Related: Lowest Weekly Close Since December 2020 – 5 Things to Know in Bitcoin This Week

Should such a break occur, it would be the first time that ETH/USD has traded in triple digits since January 2021. As Cointelegraph reported, the pair had previously It crossed its peak of $1,530 From the previous Bitcoin halving cycle.

Across altcoins, there has been little cause for celebration in this bearish trend, argued Rekt Capital, highlighting the alt presence against Bitcoin.

In a sign of pain affecting all cryptocurrency traders, meanwhile, data from on-chain monitoring resource Coinglass confirmed Liquidations across the markets exceeded $1.2 billion in just 24 hours.

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Cryptocurrency filter chart. Source: Coinglass

The opinions and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risks, you should do your own research when making a decision.