The month of June 2022 was brutal in terms of Bitcoin and broader market correction. The world’s largest cryptocurrency Bitcoin (BTC) collapsed by more than 37% recording its worst monthly performance since 2011.
Since then, Bitcoin has been consolidating at around $20,000 levels. It has also been one of the worst quarterly performances for Bitcoin losing more than 60% value in Q2 2022.
On-chain data provider Glassnode said that as the U.S. inflation estimates remain elevated with clouds of possible recession hovering around, the market continues to remain heavily risk-off. It has also been reflected in Bitcoin’s on-chain performance and network activity. Furthermore, as CoinGape reported, institutional traders have been shorting Bitcoin heavily.
The Bitcoin price correction has been showing striking similarities with the previous bear market bottoms of 2018 and 2020. However, there’s not enough catalyst for the Bitcoin price reversal as of now. Analysts at Glassnode wrote:
“The case for bitcoin bottom formation is one grounded in observable dominance of strong-hand investors, historically significant lows in numerous macro oscillators, and a strong confluence with prices hovering in striking distance of several bear-market pricing models. However, can these HODLers hold the line?”
