Bitcoin (BTC) hit the $69,000 mark on June 8 as traders healed the wounds from the sell-off.
Bitcoin, Ethereum maintain downward trend even after flash crash
BTC price action stabilized through the weekend, according to data from Cointelegraph Markets Pro and TradingView.
The largest cryptocurrency withstood sudden volatility during previous Wall Street openings thanks to US employment data labeled “schizophrenic.”
This was further exacerbated by the altcoin debacle caused by the market reaction to pseudonymous investor Roaring Kitty’s live stream.
BTC/USD hit a local low of $68,450 on Bitstamp, while the largest altcoin, Ether (ETH), briefly fell below $3,600.
Commenting on the events of the past 24 hours, trading firm QCP Capital called the US session “doubly bizarre”.
“The US inflation numbers were confusing enough to trigger risk aversion ahead of the FOMC meeting next Wednesday.” These are some of the latest updates for Telegram channel subscribers.
QCP referred to next week’s macro data printout, including the Consumer Price Index (CPI), along with the Federal Reserve meeting to decide on interest rate policy.
“This was followed by a Roaring Kitty live stream that had nearly a million viewers, during which GME stock plummeted,” it continued.
“It is probably no coincidence that Alts and Memecoins began to collapse, losing over $40 billion in market capitalization.”
Nonetheless, the firm saw local lows in BTC and ETH as a “good opportunity to buy low” that could potentially benefit risk assets based on future Fed moves.
Major BTC price levels emerge
With an eye on key levels, the cryptocurrency market analysis showed that a monthly market cap of around $67,500 appears to be a level to maintain if the weakness continues.
Related: Bitcoin Hash Ribbon Flashes First Buy Signal Since BTC Price $25,000
Popular trader Crypto Chase wrote in some of his latest posts on
“Losing all of these levels would result in a loss of the current HTF bullish bias to IMO levels. BTC, which holds 64-65K, will be the last hope before destruction.”
A potential silver lining came in the form of a leverage flush across Bitcoin and Ethereum.
“Bitcoin lost approximately $1.3 billion in open interest due to this flush. $ETH also suffered losses of around $800 million, for a total loss of well over $2 billion for BTC and ETH combined,” said fellow trader Daan Crypto Trades.
Previously, Cointelegraph already reported on global liquidity trends that are helping BTC price hit new all-time highs.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.