Summary:
- Crypto tokens continue to bleed as market uncertainty persists.
- Market leaders Bitcoin and Ethereum dipped over 15% on Monday.
- BTC is down more than 6% in the last 24 hours and trades below $23,000.
- Technical analyst MagicPoopCannon predicted a leg down for BTC to the $20K or $22K level.
Another difficult week for the world of virtual assets as the total cryptocurrency market cap slipped below $1 trillion on Tuesday. Data from on-chain aggregator CoinMarketCap showed that the total cash currently circulating across crypto tokens sits under $950 billion at press time.
The last time crypto’s market cap reached these levels was around 16 months ago, back in February 2021.
Crypto Leaders Bitcoin And Ethereum Dip To Levels Not Seen Since 2022/2021
Crypto’s leading token Bitcoin took a huge hit on Monday amid a general market slump. BTC dropped by almost 20% in a single day, going as low as $21,800 on some exchanges. The top crypto token is also down on Tuesday by over 7% and trades around $21,900 at press time.
As EWN previously reported in May, technical analyst MagicPoopCannon (MPC) predicted a leg down to these levels. MPC cited macro support indicators around the $20,000 to $22,000 regions as the basis for their price prediction.
#BTC is falling below the 61.8% moving average of the entire bull market, in what may be the beginning of the next major leg lower. I do see a technical case for a rapid decline to $22,000 or $20,000, before new support is found, if a leg down gains steam. pic.twitter.com/1Q5Zm8krZz
Bitcoin’s plunge below $24,000 also broke through the supposed realized price level highlighted by Dylan LeClair, Head of Market Research at Bitcoin Magazine. The last time BTC dipped as far as $21K was back in December 2020, almost 2 years ago.
Notably, LeClair pointed out that hitting these low levels could indicate that a bottom is in or close.
Here is a standardized ratio between market price and realized price (market value to realized value – MVRV).
24k would be in the green zone.
Again, dips to/below realized price have historically signaled a capitulation style bear market bottom is in (or close).
[2/3] pic.twitter.com/8EizHYPBi3
Similarly, the leading altcoin Ethereum also slumped significantly below $1200 despite anticipation surrounding The Merge. ETH currently exchanges hands at $1,194 after a slight recovery since Monday’s 15% dip. Ethereum dropped as low as $1,080 for the first time since January 2021. Per data from TradingView.
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