Bitcoin faces its lowest weekly close since late 2020 as low liquidity over the weekend exacerbates existing weakness.
Bitcoin (BTC) suffered further losses on June 12 as low trading volumes over the weekend fueled an ongoing selloff.
Hourly candlestick chart BTC/USD (Bitstamp). Source: Trade View
Analyst compares risky asset pumping to 1929
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting lows of $27,150 for the sixth straight day.
With hours remaining until the end of the week, the pair was in danger of continuing a losing streak that had previously seen a record nine consecutive weeks of red candles.
To avoid this outcome and post a second green close, BTC/USD had to gain more than $2,000 compared to the current spot rate, which is $27,400 at the time of writing.
Weekly candlestick chart BTC/USD (Bitstamp). Source: Trade View
As support levels failed to reverse sentiment on lower liquidity during weekend “after hours” trading, analysts feared a retest of May’s 10-month lows.
“Well, Bitcoin failed to hold $29.3K and started falling even more. Let’s see how the $28.5k area reacts,” Cointelegraph contributor Mikael van de Poppe wrote in his latest BTC update on June 11:
“If not, there’s $26,000/$24,000 at stake.”
Amid the ongoing talk of the “capitulation” of other crypto assets, many have focused on the fate of highly correlated stock markets. Mike McGlone, senior commodities strategist at Bloomberg Intelligence, believes that risk assets more broadly may have already peaked in the past two years.
“If the stock market keeps falling, almost everything will peak,” he told his followers on Twitter:
“Just a normal return could seem like a bust, and pumping risk assets in 2020-21 could go down in history like 1929 and 1999.”
Meanwhile, Bitcoin was trading at daily lows around $27,000 closest to its “mini capitulation” in May as Terra LUNA exploded on that day of turmoil.
Therefore, many are wondering where the true bottom of Bitcoin’s macro price might be.
“When the price hits the low 20,000, most CTs will ask for 10,000 or even less. This will be a bottom confirmation,” said popular Crypto Twitter account Il Capo.
As Cointelegraph reported, generation floor assumptions range from $27,000 to a grimly bearish $14,000 or even below.
Ethereum makes major realized price crossover
Meanwhile, the picture for altcoins has been shakier.
Related: Bitcoin Price Faces Lowest Closing Week Since 2020 as Inflation Scares Markets
A look at the top 10 cryptocurrencies by market cap showed that daily losses are larger than BTC/USD, with some losses exceeding 10%.
Ether (ETH), the largest altcoin, is down about 7% on the day, pushing the spot price below the strike price for the first time since May.
The realized price refers to the combined price at which each token was last moved, and a break exposes ETH to an increased risk of panic capitulation. Bitcoin’s realized price of around $24,000 remained virtually unchanged during May’s decline.
“Due to the price drop over the weekend, the Ethereum market fell below the realized ETH price of $1,781,” analysis firm Glassnode commented on the accompanying chart:
“This means the market holds an average unrealized loss of -18.4%. The realized price of ETH 2.0 deposits is higher at $2,404 and the unrealized loss is -39.6%.”
Ethereum realization price vs. ETH/USD annotated chart. Source: Trade View
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