BTC/USD Supported after Erasing Nearly 60% in Q2
BTC/USD Analysis
The poplar cryptocurrency wiped out around 60% of its value during the second quarter of the year, closing below 19,000 – the lowest since December 2020.
The collapse in Crypto prices continues to reverberate across the industry, leading many firms to financial distress. Last week, we saw a prominent hedge fund defaulting on a loan, whereas on Monday, crypto lender Vauld suspended all withdrawals, trading and deposits on its platform. [1]
The technical outlook has not changed, since BTC/USD remains vulnerable to 17,566, although risk for a breach seems to have diminished in the near-term and 13,207 appears distant.
The new quarter however has started in a better mood, as Bitcoin reclaims the 20,000 mark, trying to set a floor, while the Relative Strength Index moves above 50. A push for the 23.6% Fibonacci of the June High/Low decline (21,703) would not be surprising.
Daily closes above it, could spark further recovery to the 38.2% level (23,624), but this has a high degree of difficulty under current conditions.
Nikos Tzabouras
Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.
References
| Retrieved 18 May 2023 https://www.vauld.com/blog/corporate-statement/ |
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