Bitcoin prices are again under pressure, as the cryptocurrency space faces more losses.
As of midday Thursday, June 30, bitcoin is down 5% and ethereum is down almost 7%. At today’s low, bitcoin was back below $19,000, while this year's low sits near $17,594.
Many investors were hoping that last week’s flush would mark the low and that the cryptocurrency could begin the long road to recovery.
With this week’s action — as bitcoin is now down in five straight sessions — those hopes are beginning to fade. Yet not everyone is completely discouraged.
So far, the cryptocurrency has seen a peak-to-trough decline of 74.5%. This hardly marks its first large decline, though.
From its 2017 high to the 2018 low, bitcoin fell 83%. From the 2019 high to the covid-19 low in March 2020, bitcoin fell 72%.
The question now is, will bitcoin recover again?
For what it’s worth, I do believe that bitcoin will recover, I just don't know where the low is. There’s a place for digital currencies in our world, but there’s not a need for dozens and dozens of them, most of which were created solely for speculation with little to no real-world functionality.
Bitcoin is different and is the most widely known and largest cryptocurrency in the world.
Notice the weekly chart above, which highlights the two major corrections that preceded this year’s pullback. Both times, the 200-week moving average has been support.
In addition to the 200-week moving average, I thought we would see a stronger bounce off the $19,500 zone, which marked a huge breakout over the prior all-time high in December 2020.
The cryptocurrency enjoyed a modest bounce off this area, but has struggled to reclaim the 200-week moving average. As you’ll notice on the daily chart below, bitcoin continues to break below uptrend support (blue lines), while active resistance — the 10-day moving average — continues to squeeze it lower.
As bitcoin struggles with the prior all-time high near $19,600, the 2022 low remains vulnerable down at $17,600. If that level breaks and bitcoin can’t reclaim it, there’s not many key levels to focus on.
Perhaps most notable is the $13,800 to $14,000 area, which marked the 2019 high and can be seen on the weekly chart. Bulls are hoping it doesn't come to that, though.