Bitcoin for the first time has busted below $20,000 with other coins in the markets on the 18th of June to find the support at the nearest low at $17,622. Ethereum, the second-largest cryptocurrency has also fallen under $1000 amidst the intense market sell-off, over the weekend.
Compared to the crypto bear market in 2018, cryptos in 2022 are tanking along with an intense burst down in tech stocks in the thick of the global economic downturn following increasing inflation and forthcoming recession.
During bear phases of the market, bottom chasers usually are glued to the screens, and impatiently trying to comprehend the underlying market mechanics to get the best bid for their limited orders or as naysayers advise not to: time the market.
The carnage-like situation has seen the cast of OG players in the crypto-verse fallout in downward spirals that crashed the markets in a way never imagined in a month of Sundays. With Terra's stablecoin bust, Celsius and Babel finance pausing withdrawals to stabilize liquidity, and Grayscale's GBTC trust running on an all-time low discount price, all these factors were strong enough to induce a risk-aversion wave in the market.
Currently, Bitcoin saw lower support at $17,800 levels, and as seen on charts it's weak enough to cause more pain to the investors. If a further leg down follows for BTC price the top asset can be seen running for the support at $13,800 levels.
Looking forward, the chances of witnessing a v-shape recovery in the sphere isn't much of a possibility this time as it was in March-June 2020. For the markets to stabilize and start rising, a non-scary inflation percentage is really crucial at such times.
With crypto markets being 70% correlated with the stocks market, the impact of the carnage of one is bound to be seen in the other.
A few things to keep in mind before stepping out in such market conditions are used to wait and assess before taking any necessary market trades with minimal use of leverage and using a systematized form of risk management and capital protection strategies.