Why Bitcoin (BTC), Etherem (ETH) Are Spiking Today

Bitcoin and Ethereum spiked Thursday evening as the global cryptocurrency market cap increased 5.2% to $929.8 billion at press time.

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Why It Matters: Cryptocurrencies continue to shadow stocks. On Thursday the S&P 500 and Nasdaq ended the day 0.95% and 1.6% higher as stocks shrugged off bearishness and looked to rally. 

“Bitcoin remains anchored around the $20,000 level as Wall Street tries to figure out how aggressive the Fed will be to fight widespread inflation,” said Edward Moya, a senior market analyst with OANDA.

Moya said that Bitcoin is unlikely to trade on “crypto fundamentals” until a firm bottom is agreed upon in U.S. stocks.

“Bitcoin’s longer-term outlook is for much higher prices, but no one is confident that the bottom is in place. Bitcoin will remain a volatile trade and the correlation with equities seems like it will last for quite a while.”

Bitcoin and Ethereum values have slipped 55.8% and 69.7%, respectively, since the year began. 

The drawdown from the apex coin’s all-time high touched 73.3% compared to the previous bear market lows of between 75% and 84%, noted Glassnode in a tweet.

The on-chain analysis company said the duration of this bear market is 435 days from the April 2021 all-time high and 227 days from the November 2021 all-time high. 

The #Bitcoin drawdown from ATH has reached 73.3%, compared to previous bear market lows of between 75% and 84%.

The duration in this bear is:

– 435-days from the Apr-2021 ATH

– 227-days from the Nov-2021 ATH

This firmly places the current bear within historical bear norms. pic.twitter.com/YQPvAEmklU

— glassnode (@glassnode) June 23, 2022

“This firmly places the current bear within historical bear norms,” said Glassnode.

Cryptocurrency trader Justin Bennett tweeted, “We either get an immediate breakdown in the next 24-48 hours or a fakeout above resistance in the next few days.”

We either get an immediate breakdown in the next 24-48 hours or a fakeout above resistance in the next few days, IMO.

Either way, I don’t think we escape this without another leg lower to the $16k-$17k area. $BTC #Bitcoin

— Justin Bennett (@JustinBennettFX) June 23, 2022

Bennett said an escape from the $16,000 to $17,000 areas is unlikely for Bitcoin.

Yet another trader, Michaël van de Poppe is more positive on the apex coin. He said Bitcoin is ready for $23,000.

#Bitcoin ready for $23K. pic.twitter.com/gWUoMoFKAX

— Michaël van de Poppe (@CryptoMichNL) June 23, 2022

Van de Poppe said that while the consensus is that “we’ll be doing way lower and people continue spreading that idea,” it is mainly due to the fact they’ve heard it online. 

“Just like they have been [hearing] from strangers on the interwebs that they should buy crypto, when it was [at its] peak [in] 2021.”

The overall consensus is that we’ll be going way lower and people continue spreading that idea, as they’ve heard from strangers on the interwebs.

Just like they have been heard from strangers on the interwebs that they should buy crypto, when it was peak 2021.

Standard.

— Michaël van de Poppe (@CryptoMichNL) June 23, 2022

Meanwhile, on the Ethereum side, on-chain data indicates that the most significant support level for the second-largest coin is at $1,140 where 454,000 addresses bought 6.65 million ETH, chartist Ali Martinez tweeted.

On-chain data shows that the most significant support level for #Ethereum is at $1,140 where 454,000 addresses have purchased 6.65 million $ETH. #ETH must hold above this demand zone to advance toward $1,500. pic.twitter.com/WFpcq0WtsM

— Ali Martinez (@ali_charts) June 21, 2022

Ethereum “must hold above this demand zone to advance toward $1,500,” said Martinez.

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