By Regal Assets
The price of bitcoin fell below $21,000 on Thursday, Jun 14, reaching its lowest level since December 2020. For weeks, the top cryptocurrency has traded in a narrow range as crypto and stock markets had failed to recoup any significant upward strength following more extensive sales in May. Experts also refer to the ongoing conflict in Ukraine and inflation hitting a 40-year high as reasons for the stock and crypto markets’ price declines.
Surging inflation, persistent uncertainty about the country’s prolonged struggle with COVID-19, and government legislative moves by the US government, notably Biden’s recent executive action, have all contributed to recent price fluctuations. It doesn’t take much in an industry as young and untested as cryptocurrencies to cause significant price movements. More broadly, new short-term investors dumping their holdings in response to the recent downturn may be adding to Bitcoin’s price decline.
Some of the declines have been triggered by a variety of causes, ranging from enthusiasm over poor coins to Elon Musk’s unfavorable statements to China’s recent crackdown on crypto services. This combination of circumstances has the potential to cause sell-offs.
Bitcoin fell below the $23,000 barrier as investors braced for more rate rises. Even for Ethereum, merge euphoria was over. Experts predict range-bound movement in the following days.
The bear flag pattern on Bitcoins charts looks to be continuing, implying that the current BTC/USD rise is coming to an end. The bears are more optimistic than the bulls. Long-term buyers should join or raise holdings when the daily candle closes over $26000.
Because a price objective of $12k is not impossible, crypto bears still have a favorable benefit ratio. In a more modest and realistic situation, a bitcoin price objective of around $18800 remains relevant for short traders. The bear flag, on the other hand, would be rendered worthless if a daily candle closed over $26k.