Bitcoin and Ethereum Price Struggle to Hold Support Amid Increasing Bearish Pressure
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.
Bitcoin Price Struggles to Hold Above $20K
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.
Ethereum Price Holds Above $1K
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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