The sharp uptick in inflation and the Federal Reserve interest rate increases have triggered a sell-off across the crypto market. Bitcoin Price continues to bleed this week now hovering just above $20K. Major altcoins are faring even worse with Ethereum price on the verge to drop below $1k.
Bitcoin Price Started a fresh decline after failing to hold above $22K. The flagship currency is inch close to drop below $20K, this was the lowest level since december 2020. The king coin never tested this level there after.
At present, the initial support lies at 20,200 level. However, if BTC price continues to bleed and breaks the major support at $18800, traders can expect the worst scenario.
On the other hand, if the bulls manage to stay above the $20K crucial level and successfully breaks the major resistance at $22500 we can hope for a recovery.
Will BTC Reach its Rock Bottom in September?
Everyone in the crypto domain believes that things will only grow worse and thus will mark the end of all bull runs. Here’s what Chico Crypto has to say about the upcoming turmoil.
Here it can be seen that the current dominance has already begun to manifest. It is getting close to 50% and could return to the level of domination reached in December 2020, above 75%.
Therefore, one can reasonably anticipate that altcoins will start tumbling again sometime early next year. With regard to Ethereum, bitcoin will start moving and take the liquidity first.
It will start slowly before truly ramping up in 2024 and 2025, with the large caps coming next, followed by the mid and small caps.
Additionally, Popular crypto analyst and founder of bitboy youtube channel,Ben Armstrong discuss the crypto market sell-off in a recent interview with Yahoo news.
The analyst predicts the BTC bottoms based on the FED fund rates. He believes that the FED decisions have always impacted the crypto space.
As per Ben, the BTC prices may find their bottoms somewhere in November, around $14,000. Thus untill Q4 Traders can expect the flagship currency to enter the consolidation phase.