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Bitcoin and Ethereum tumbled once again - BTC fell below $19,000, and ETH is about to test $1,000. Despite a sizeable upward correction, market players do not believe that the crypto market has bottomed out after its June crash.
According to Arthur Hayes, the crypto market's 80% plunge is not over and the worst is yet to come. He predicts it could possibly sink on July 4. "By June 30 (second quarter end), the Fed will have enacted a 75 bps rate hike and begun shrinking its balance sheet. July 4 falls on a Monday, and is a federal and banking holiday. This is the perfect setup for yet another mega crypto dump," Hayes wrote.
Market players are influenced by expectations and not hard facts. Bitcoin's dive below $20,000 has already brought losses to numerous major hedge funds - another such fall could knock out remaining market players with exposure to BTC. Bitcoin could very well plunge towards $15,000 by Monday, while Ethereum could reach $550.
In the meantime, the central bank of Taiwan is continuing its work on a Taiwanese digital currency. However, its development is far from complete, and it could take the central bank two years to finish it. The central bank wants to win the support of the public, ensure the stability of the system, and create a legal framework for the currency's operations, governor Yang Chin-long said.
The governor of the Taiwanese central bank added that the regulator simulated the use of the CBDC. However, he noted that many residents of Taiwan are accustomed to using cash, and that it should be taken into account. "We still have to push forward. After all, most of the young people in the future will use mobile phones, so we have to think about the next generation," Yang said.
Bitcoin has plunged once again, and bullish traders are unlikely to regain the initiative. At this point, traders are recommended to wait for the cryptocurrency to stabilize before going long on BTC. A breakout of the closest support level of $18,880 would send the instrument towards the low at $18,240 and $17,580. If bitcoin goes into an upward correction, it would encounter resistance at $19,600. A breakout above this level would send BTC towards $20,400 and open the way towards $21,150, easing investor anxiety. From there, the cryptocurrency's next target would be $21,875.
Ethereum's latest major sell-off triggered stop-loss orders of traders expecting the upward correction to continue. The main goal for bullish traders is regaining $1,095. ETH needs to rise above this level to test the high at $1,165. A new bull market is unlikely to begin, even if ETH manages to break towards $1,235. Ethereum needs to settle above $1,235 to return into the $1,280 area, which would serve as an obstacle for the cryptocurrency. If pressure continues, ETH could reverse upwards near the closest support at $1,015, but it is unlikely to persist. The cryptocurrency could likely hit new lows near $935 and $875.
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