Bitcoin (BTC) rescued sick hodlers losing $ 20,000 on June 15 after BTC / USD came dangerously near the last cycle high.
Bitcoin “bottom” is no fool
On a pause from the sell-off, the pair followed higher U.S. equities on the Wall Street open, reaching $ 21,700. The S&P 500 gained 1.4% after the opening bell, while the Nasdaq Composite Index managed 1.6%.
The updated market strength, commentators said, is because the majority has given a price on the incredible key rate hike by the Federal Reserve, as it will be confirmed later in the day.
However, this is the worst -affected crypto in an inflationary environment, said Bloomberg commodity strategist Mike McGlone. In a tweet, she contrast The performance of Bitcoin and altcoin with rising commodities, particularly WTI crude oil, futures that are currently trading almost twice the 200-week moving average.
“Crude Spike vs. Bottoms in Bitcoin, Bonds, Gold- Crude oil futures have historically been extreme above the 200-week average as ample fuel for rising inflation, falling consumer sentiment, Federal Reserve rate hikes for acceleration and continued drunkenness- continuously., “he protested.
Despite the suppressed price action, many are not convinced that Bitcoin can hold the $ 20,000 zone for much longer.
“We haven’t seen any capitulation in the Crypto market,” popular Crypto trader Tony said toward Twitter followers.
“It’s been close, but it doesn’t feel like it. Every bounce is filled with optimism and it shouldn’t be like that.”
Traders and analysts of Rekt Capital agreed, saying that the sale was not accompanied by a corresponding volume.
“Strong market selling is done for BTC,” he said write on the day.
“Of course, Seller Exhaustion is at the forefront. Watch for a high sellside volume bar. This tends to signal down after a continuous sale & precedes a trend reversal all over time.”
Losses are still not the same as “capitulation” – data
Meanwhile the data shows how much panic selling occurs in a short period of time.
The weekly realized losses reached 2.6% of Bitcoin’s realized cap, the highest, according to figures from on-chain analytics company Glassnode described by CryptoVizArt.
– CryptoVizArt.btc ∞/21M – LOST #BTC (@CryptoVizArt) June 15, 2022
Bitcoin net unrealized profit/loss (NUPL) metric, flap coins that are not physically sold, also represent a significant proportion of the supply hodled underwater – the most, in fact, since March 2020.
According to the accompanying scale, the metric has turned red after falling below zero, i.e., the historical “capitulation” zone.
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