While American stocks plunged at the opening of Wall Street on July 14, Bitcoin escaped losses, but traders remained uneasy.
Analysts Weigh In On Bitcoin Bottom
The S&P 500 and Nasdaq Composite Index both fell by about 1.8% at the time of writing as Wall Street opened in the red.
Although the largest cryptocurrency’s correlation to stocks declined to its lowest levels of 2022 so far, Bitcoin was still able to hold its own.
BTC/USD trades above $20k. Source: TradingView
BTC/USD fluctuated around $20,000 during the day, as shown by data from TradingView.
However, few were prepared to declare that hodlers’ worst days were behind them.
Aksel Kibar summarized to his Twitter followers:
“This has been a weak rebound so far. Another possible bearish continuation…”
Related Reading | Bitcoin Drops Below $22,000, Is Peter Brandt’s Analysis Still In Play?
Due to a confluence of macroeconomic factors, well-known economist and analyst Michael Suppo anticipated a lower low than June’s around $17,500 levels.
“No way is $17.5k the bottom for Bitcoin,” he noted.
Before any retest of the current multi-month lows, some people thought that higher support levels would hold.
13.7K is a possibility that we’ve been watching for 10 months now. #Bitcoin will not hit 13.7K unless we lose 19.5K as support.
19.5K is holding really well so far. The bottom is likely in or very close to being in but most will miss the bottom while waiting for lower prices🤓 pic.twitter.com/AJF5ye0ntn
— Steve Courtney ~ Crypto Crew University🤓📈 (@CryptoCrewU) July 12, 2022
Trading Volume Tumbles To Lowest Since 2020
Exchange-wide spot and derivative volumes have decreased, falling more than 15% since May to over $4.2 trillion, the lowest level since January of last year. Spot volumes fell roughly 28% to $1.41 trillion in June alone as Bitcoin fell to its lowest level since December 2020, according to statistics gathered by CryptoCompare.
The amount of trade in derivatives decreased by 7% during the month, which was the lowest level since July 2021. In the cryptocurrency industry, derivatives play a significant role and account for more than half of the market.
Source: Cryptocompare
Market observers believe the pattern makes sense in light of the dips in Bitcoin and Ether, both of which have plunged more than 70% from their all-time highs last year. The price of bitcoin dropped 15% on June 18 to $17,599, its lowest level since late 2020.
Related Reading | Data Suggests Buying On Coinbase Behind The Bitcoin Pump
Featured image from Pixabay, charts from TradingView.com