Bitcoin and Ethereum Price Struggle to Hold Support Amid Increasing Bearish Pressure – The VR Soldier
After yesterday’s bullish rebound where Bitcoin and Ethereum prices saw significant price growth, the momentum is currently dying, with BTC and ETH prices retracting a few percent. Bitcoin is struggling to hold the $20k support level while Ethereum is attempting to stay afloat above $1k. The recent bearish momentum is likely due to continuing investor worry about inflation and the stock market’s underperformance today.
While Bitcoin managed to soar above $21k yesterday, today is different. As the stock market opened with little momentum, Bitcoin’s market started losing steam.
The Dow Jones Industrial Average continues to slump to 17-month lows as inflation continues into unprecedented territory. On the other hand, the S&P 500 managed to retain most of its bullish momentum from yesterday, currently trading at $3,785.
Regarding Bitcoin news, Michael Saylor, a BTC whale, has been vocal in his opinion regarding urging the government to step in and regulate the sector.
In addition, Saylor compared Bitcoin to a lifeboat tossed on a stormy sea, offering hope to anyone in the world that needs to get off their sinking ship.
#Bitcoin is a lifeboat, tossed on a stormy sea, offering hope to anyone in the world that needs to get off their sinking ship. We are witnessing the birth of a new industry during the worst financial crisis of our lifetime. My interview w/@jchatterleyCNN pic.twitter.com/P2QJWgyf0S
— Michael Saylor (@saylor) June 22, 2022
While the short-term market outlook of Bitcoin is grim, the tokenomics of the crypto assets provide for a far better long-term potential than a traditional currency, where inflation runs rampant.
The current $20k level provides strong support for BTC, and if Bitcoin somehow manages to dip below the $10k level, there will be a significant amount of buy volume to push the price up.
For those unfamiliar with crypto bear and bull cycles, the usual trend includes a long and painful bear market followed by a short and robust few months where crypto assets increase by 5X to 10X. The key is to hold through the tough times to reap the insane rewards during a bull market.
Like Bitcoin’s 20k support level, Ethereum has substantial support at the $1k level. Once the cryptocurrency dips below $1k, there’s significant buy volume pushing ETH up.
As the second-most valued crypto asset on the market, Ethereum has tremendous long-term potential as an altcoin. Even though it amplifies Bitcoin’s prices, it could be a better alternative for those investors willing to take on a higher risk to generate higher returns.
As the leading platform for Metaverse, NFT, and DeFi applications, Ethereum isn’t going anywhere. The network has been battle-tested almost as extensively as Bitcoin, and a scenario like Terra Luna won’t happen to ETH, making it one of the safer investments when it comes to crypto assets.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any project.
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June 24, 2022 at 12:32AM