BTC/USD Supported after Erasing Nearly 60% in Q2

  • BTCUSD
    (${instrument.percentChange}%)

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.

Trade the News: View our Economic Calendar

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

1

Retrieved 19 Aug 2022 https://www.vauld.com/blog/corporate-statement/

Disclosure

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.

Risk Warning: Our service includes products that are traded on margin and carry a risk of losses in excess of your deposited funds. The products may not be suitable for all investors. Please ensure that you fully understand the risks involved.

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}