With bitcoin and ethereum falling to their lowest levels in last years, the BitMEX co-founder predicts more losses if the two assets break key support levels. So what is causing Bitcoin sell off and key levels for Bitcoin and Ethereum. Let’s find out by reading the article below.
What is causing Bitcoin sell off?
The carnage in the cryptocurrency market has been caused in part by the stress of macroeconomic forces, including rising inflation and the Federal Reserve’s successive rate hikes. We also saw these blue-chip cryptocurrencies track the stock market lower. It doesn't help that crypto companies are laying off massive numbers of employees, and some of the industry's most popular names are facing a solvency collapse.
Key Levels for Bitcoin and Ethereum
As the carnage continues, Arthur Hayes observes that Bitcoin is forming a base at $20,000 while Ethereum is trying to limit its losses to $1,000. However, the Hayes warned in a 14 Jun 2022 Twitter thread that falling below these levels could be far worse for the couple.
The former BitMEX head explained that a breach of the above-mentioned levels could trigger significant selling pressure in the spot market as traders hedge. However, there could also be a situation where many OTC traders are unable to hedge and cover their positions, ultimately triggering more sell-side pressure on Bitcoin and Ethereum.
Rumors of a possible bankruptcy by Celsius have put significant bearish pressure on prices that were already weighed down by Friday's CPI data, which weighed on markets. Crypto asset trading firm QCP Capital points to similar liquidation levels for market participants to watch out for.
I hope this article will help you to learn what is causing Bitcoin sell off and key levels for Bitcoin and Ethereum. Popular analyst “Rekt Capital” speculates that Bitcoin may be “executing a macro double bottom at the 200-week moving average,” while observing that historically, bear market capitulations have seen Bitcoin’s 200-week moving average firmly supported Level.
