LiveWire

Bitcoin is on track for its worst quarter in more than a decade, as more hawkish central banks and a string of high-profile crypto blowups hammer sentiment.

Bitcoin trades higher on Monday, above the key psychological level of USD20'000, after falling below USD18'000 over the weekend. Traders fear liquidations could worsen the crypto rout. Nonetheless, the rebound points to some investors seeing the 58% loss year-to-date and 30% downfall in just 1 month, as an opportunity to buy. For many DeFi apps the volatility means reducing exposure to protect their ecosystem. On a technical picture Bitcoin still trades in the range we highlighted last Friday with a descending triangle that could soon see a swift move in either direction. Support level still holds at USD19'500. With the intense selling pressure recently, chances of a rebound are increasing. 

Bitcoin is still consolidating after a treacherous week hurt by the fiasco in crypto markets. On the positive, it has maintained above USD20'000, with USD19'500 being a solid long-term support level. Trading action in the last few days suggests it is still in a negative downtrend, as it remains below a descending channel. Perhaps a turn in sentiment for risky assets could fuel a rebound. 

Bitcoin is quickly approaching prices not seen since December 2020, as risky assets selloff in fear of rising rates and investors capitulating to the market pressure. The next major support level is USD20-21k. In order to get there, at USD24'800, Bitcoin would need to drop another 15%. Below it, USD11k would be significant support. Accelerating the selloff in crypto is a tweet by Celsius Network, a crypto lender that it is pausing all withdrawals, swaps, and transfers on its platform, and a competitor announcing a bid for its assets. Rumors have it the crypto staking and lending platform could be dealing with a major liquidity crisis and some users believe the team may have mismanaged the funds. It is believed to have over USD10 bn in assets.

Most major altcoins are facing key hurdles. Ether is trading in a tight range for almost a month, with the 1'700 level providing so far solid support. Traders are keeping a close eye. A move below this level could signal the start of steeper declines.