As a result of the significant drops, several experts have projected extremely bearish targets. While anything can happen in the markets, making a call on a bottom is difficult, capitulations normally indicate the start of a bottoming pattern. Once the price has stopped falling, traders should build a purchase list and consider buying in phases.
The cryptocurrency markets are falling in lockstep with the stock market, and selling pressure has risen as a result of a rumoured liquidity crisis at important lending platform Celsius, as well as traders perhaps liquidating assets to meet margin calls. As a result, the total value of the cryptocurrency market plummeted below $1 trillion. Let’s have a look at the prices of different tokens.
Bitcoin(BTC)
Bitcoin went below the immediate support level of $28,700 on June 11. As a result, the bears pushed the price below the crucial support level of $23,476. The bears continued to sell on June 13, driving the BTC/USDT pair to an intraday low of $20,816.
As a result of the recent severe drop, the relative strength index (RSI) has reached the oversold zone. This indicates that a relief rally or consolidation is likely in the coming days. Any recovery will very certainly be met by selling between $26,500 and $28,700. If the pair breaks below $20,816, it may fall to the 19891 support level. The bulls will have to push the price above $28,700 and keep it there to suggest that the bears are losing control.
Ethereum(ETH)
Ethereum’s investors are hoping that the upcoming Merge will help to arrest the price drop. Ethereum network programmers have postponed the difficulty bomb, paving the way for the much-anticipated Merge upgrade. The daily transactions chart for ETH in 2022 shows a consistent increase between one and two million transactions. This could suggest that the network was able to accommodate or handle transaction traffic efficiently.
On June 10, ETH went below $1,700, indicating that the bears had assumed control of the market. The selling accelerated on June 13, and bears pulled the price down to $1224, a strong support level. The pair could aim to break through $1,700, which was the previous low. If bears continue to sell, the pair could fall to $828, which would be psychological support.
ChainLink(LINK)
This week, the Chainlink Blockchain had a wonderful week in terms of development. The Chainlink Network announced a roadmap and early implementation of staking on June 7. The Network also discovered 20 Chainlink service integrations across five chains, including Chainlink External Adapter, Chainlink Price Feeds, and Chainlink VRF. While the rest of the cryptocurrency market was fighting bears, LINK was unable to profit from these network advances and dropped as well. Let’s have a peek at the LINK pricing.
The strongest level of resistance is at $8.9, while the lowest level of support is at $5.25. The price has been unable to burst through the highest barrier of $8.9. This appears to be a bad situation. The current price of LINK is $6.3. If the $5.25 support holds, it appears that it will soon reach $7.7.
Conclusion:
Investors are experiencing a crypto winter. In 2022, the value of the global cryptocurrency market fell by over $1 trillion, and nearly all major coins are now worth half or less than their all-time highs. The main concern is whether the market will continue to collapse or whether things will improve in the near future. This has fueled market pessimism, with investors avoiding high-risk assets like cryptocurrency. The general pessimistic attitude has been wreaking havoc on altcoins.
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