Bitcoin Crashes to $17.5K as Fundamental Factors Weigh Heavy on Sentiment
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Several factors, working hand-in-hand, are responsible for the worsening bearish sell-off. Firstly, there was the news of behemoth cryptocurrency exchange Coinbase laying off 18% of its staff, with the company’s CEO Brian Armstrong blaming the move on the ongoing “crypto winter.”
Commenting on the ongoing large-scale correction, Jayjit Biswas, a Web 3.0 and blockchain enthusiast, noted: “I think the entire crypto market was due for clean-up and course correction. Once they are cleaned, BTC may gain its value in the long run and come out from this phase. But not in [the] next six to 12 months. Bad projects need to be relooked at and treated accordingly.”
Also, other crypto companies like Global Inc., Gemini, and BlockFi recently announced that they plan on cutting their labor force as investors shy away from riskier assets.
Biswas further explained:
“Fed rate hike and growing inflation scared people who want to withdraw money and hoard it for bond investment and to meet personal expenditure. Covid and the Russia-Ukraine war put enormous inflationary pressure on the common people. First, they need to feed themselves, and only then can they spare some money for speculative areas like cryptos.”
Key Bitcoin Levels to Watch — June 19
Bitcoin recorded a significant drop over the weekend as bears dragged prices lower. The benchmark cryptocurrency tapped the $17.5K low, a two-year low, after somewhat unexpectedly losing its defense of the $20K support.
The market remains in oversold conditions, but no relief appears to be necessary. While BTC has resurfaced above the $20K mark, we could see another bearish wave in the coming days as analysts expect a drop below the $16K region.
Meanwhile, my resistance levels are at $21,000, $22,000, and $23,000, and my key support levels are at $20,000, $19,000, and $18,000.
Total Market Capitalization: $901.3 billion
Bitcoin Market Capitalization: $392.3 billion
Bitcoin Dominance: 43.3%
Market Rank: #1
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