Bitcoin Slides Under $20K – Another Collapse In The Offing?

Christian Encila

2 years ago

2 mins read

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Some parts of the virtual stratosphere are again rife with photos of the Titanic sinking. For those in the know, obviously, that alludes to what has befallen Bitcoin these days.

There was supposed to be a good ounce of jubilation in recent days when the world’s most popular crypto showed signs of renewed vigor and reclaim a price level that would have eased the fears of many but, nope.

June Not A Good Month For Bitcoin

According to data from Coingecko, Bitcoin fell below $20,000 on Thursday, to $19,112, a drop of 4.5 percent over the previous week. The most popular cryptocurrency fell below $20,000 for the third time in as many weeks, extending the crypto market’s June slump to the very end of the month.

The price of Bitcoin has reached a consolidation period and its downward trend appears to have halted following a major shakeout to $17,000. This area is likely to provide substantial support, since it encompasses the 2017 all-time high, and it might trigger a short-term recovery to the $30,000 zone.

Multiple variables contribute to Bitcoin’s price fluctuations, and as long as these factors persist, this unpredictability and price variation will persist.

Three Arrows Collapse Hit Bitcoin

Popular Defi tokens such as Solana and Avalanche fell more than Bitcoin as fears of contagion grew in the wake of the failure of the hedge fund Three Arrows Capital.

Prior to this month, the price of BTC has fallen below $20,000 at least three times: Tuesday evening, Thursday morning, and two weeks ago, when the most sought-after cryptocurrency asset broke the heavily-monitored threshold after fluctuating below $25,000 for five days.

BTC total market cap at $364 billion on the daily chart | Source: TradingView.com

Bitcoin’s reasonably stable trading after hitting a low of $17,560 on June 18 spurred confidence that the damaged cryptocurrency market was preparing for a turnaround.

Deutsche Bank Is Bullish

Nevertheless, the sector remains under pressure because of the central banks’ efforts to drain liquidity and a succession of high-profile cryptocurrency collapses that have eroded investor trust.

The crypto market is drastically different from its position at the end of 2020. On December 16 of that year, $20,000 set a record high. At the beginning of this year, an 11 percent decline in Bitcoin’s value to $42,000 was referred to as a “bloodbath week.”

Despite Bitcoin’s price decline of roughly 60 percent over the previous 90 days – and in the wake of this downturn – Deutsche Bank’s analysis indicates that BTC’s price might still achieve a 30 percent rally above its present level by the end of the year.

Featured image Fast Company, chart from TradingView.com

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.