Bitcoin (BTC), Ethereum (ETH) rebound after bloodshed

Bitcoin and Ethereum traded above key psychological levels on Monday evening after slipping below them over the holiday long weekend. The global cryptocurrency market capitalization increased by 1.1% to $906 billion.

Price performance of major coins
Piece of money	24 hours	7 days	Price
Bitcoin BTC/USD	0.65%	-9%	$20,504.76
Ethereum ETH/USD	0.7%	-7.6%	$1,119.88
Dogecoin DOGE/USD	0.02%	9.9%	$0.06

Top 24 hour gainers (data via CoinMarketCap)
Cryptocurrency	% change over 24 hours (+/-)	Price
Synthetix (SNX)	+57.8%	$3.23
1 inch network (1 INCH)	+20.5%	$0.69
Arweave (RA)	+18.2%	$10.13

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Why is this important: Cryptocurrencies were buoyant on Monday evening along with other risky assets after Bitcoin and Ethereum fell below the $20,000 and $1,000 levels over the weekend.

The two largest cryptocurrencies by market cap hit lows of $17,708.62 and $896.11 respectively over the weekend.

S&P 500 and Nasdaq futures were both up more than 1% at press time.

Recession fears have taken root in the market. Inflation has shifted from a major concern to the only one, says OANDA’s senior market analyst Craig Erlam.

“The hope now is that any recession will be mild and brief, but the situation is changing so rapidly that it is difficult to know with any real certainty,” Erlam wrote in a note.

Erlam noted Bitcoin’s rapid drop below $20,000 and said it was a much-touted critical level.

“The HODLer mentality is really being tested and those who haven’t bailed out yet may be as tempted as they’ve ever been.”

Investors will turn to the US Federal Reserve by Jerome Powell presentation of the Monetary Policy Report to Congress during the cool and truncated trading week.

Next week, President Powell will present the Monetary Policy Report to Congress. The Chairman of the Federal Reserve testifies twice a year on economic developments and monetary policy. (2/2)

Learn more: https://t.co/pgnEGEOsSt

— Federal Reserve (@federalreserve) June 17, 2022

glass knot said the Bitcoin market suffered a “massive deleveraging event” this week, putting pressure on miners, long-term holders and the overall market.

“The current bear market dominoes fall is moving into a new phase. Alongside the miners, long-term holders are now starting to feel the pressure, forcing many of them to sell off at an accelerated pace,” the company said. on-chain analysis in a weekly blog post.

Bitcoin, total supply held by long-term holders – Courtesy of Glassnode

Data from Glassnode indicates that the supply of long-term holders has fallen by 178,000 BTC over the past week, which equates to 1.31% of their entire holdings.

Market sentiment continues to be tainted by “extreme fear,” according to Alternative.me’s “Crypto & Fear Index.”

Trader in cryptocurrency Justin Bennett said on Twitter that the current “bounce” appears to be weak and could be another “bull trap” before we see the next round of selling.

The analyst said the total cryptocurrency market capitalization could reach $670-730 billion before a relief rally takes place.

This rebound seems weak so far. Most likely another bullish trap before the next round of selling.

I still think we see $TOTAL reach the $670-730 billion zone before a relief rally. This is 17-25% below current levels.

— Justin Bennett (@JustinBennettFX) June 20, 2022

Bennett’s lower number would imply that market capitalization is down another 26.05% from current levels.

Michael van de Poppe stated that the apex coin needs to clear resistance near $20,500 to continue towards $23,000.

Good morning!

Markets look pretty good, if you ask me.#Bitcoins needs to break through this resistance around $20.5,000 and then we would be good to continue towards $23,000.

— Michael van de Poppe (@CryptoMichNL) June 20, 2022

The trader said that if Ethereum held levels of $1085, he assumed we would see $1250 next.