Bitcoin (BTC) jumps 8 percent up, but bottoming is not over yet

Bitcoin (BTC) jumps 8 percent up, but bottoming is not over yet

Bitcoin (BTC) spared crypto investors a dip below the psychologically important $20,000 mark today, June 15, after price came dangerously close to a long-held record high from the last major uptrend.

Bitcoin Price Chart (Bitstamp). Source: TradingView

Bottom formation is yet to come

As data from Cointelegraph Markets Pro and TradingView shows, BTC/USD has bounced back to $20,079 after a temporary dip.

The crypto market leader is thus first pressing the stop button for the current downturn after the opening of trading on Wall Street also caused new gains on the stock market. The S&P 500 was up 1.4%, while the Nasdaq Composite was even up 1.6%.

According to the analysts, the newly gained strength is due to the fact that the market is now pricing in the imminent rate hike by the US Federal Reserve.

Nonetheless, massive inflation is still having a noticeable impact on the crypto market. This clarified Among other things, Bloomberg chief analyst Mike McGlone notes that the performance of Bitcoin and the altcoins falls significantly compared to commodities such as oil, because while the former collapse, the latter climb steeply.

“We are seeing a massive jump in Crude Oil versus a crash in Bitcoin, Bonds and Gold. The historically high level of crude oil futures compared to their own 200-week average is fueling inflation and making consumer sentiment more and more negative, the US central bank’s interest rate hike could extend this slack even more,” as the financial expert writes.

Price development of WTI Crude Oil (crude oil). Source: TradingView

So while Bitcoin is able to take a little breather today, observers are not conclusively convinced that even the $20,000 area can be sustained.

“The capitulation of the crypto market is yet to come,” as representative of trader Crypto Tony states. To which he adds:

“We’re almost there, but not quite there yet. Every recovery is based on hope, and it really shouldn’t be like that.”

His colleague Rekt Capital agrees with this reading, stressing that the recent sales have not yet had the necessary volume to really finalize the bottoming.

“We are seeing market-wide selling for BTC,” the analyst initially said. and further:

“Selling pressure will be fading soon, I’m waiting for high selling volumes that will indicate final bottoming and slowly re-initiate trend reversal.”

As Cointelegraph reported, bitcoin price is currently trading near the 200-week SMA at $22,400 in the next few weeks weeks and months could serve as critical support.

Surrender is far from over

Meanwhile, the rest of the data shows how panic selling has fueled the recent selloffs.

As such, weekly Realized Losses come to 2.6% of Bitcoin’s Realized Market Cap, the highest ever for this metric according to data from glass node goes.

The Net Unrealized Profit/Loss (NUPL) metric, which looks at currency units that have not yet been sold, also indicates that much of the Bitcoin held is no longer in the profitable range. Here, too, the highest value since March 2020 is on the tableau.

Bitcoin NUPL and Bitcoin course in comparison. Source: TradingView

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