The crypto market is coming off one of its worst months as June draws towards a close, with the crypto market capitalization once again moving closer to the $1 trillion mark thanks to fresh resilience among buyers.
Bitcoin and Ether, the top two cryptocurrencies by market cap, currently trade around $20,850 and $1,190 respectively. The leading crypto assets have an intraday high of $21,469 and $1,245 and both have managed to stay above the key support levels established over the week.
But where do the two cryptocurrencies go from here? What levels should investors watch on the downside?
Analyst says the 200-week moving average is key
According to Bloomberg analyst Joanna Ossinger, the key price levels are at the 200-week moving average. For Bitcoin, that is currently around the $22,000 level, while for Ether, it’s near the $1,100 mark.
However, the “round levels of $20,000 for Bitcoin and $1,000 for Ether are still a big deal,” she said during Monday’s Bloomberg Markets and Finance show.
These levels provide the critical support zones for BTC and ETH respectively in case of fresh selling. If BTC/USD and ETH/USD hold above these zones, then buyers could be looking at new momentum above their 200-week moving averages.
On the downside, crypto analyst Rekt Capital says BTC could drop to prices near $16,000.
Last week, #BTC printed similar buy-side volume to the 2018 Bear Market Bottom at the 200-week MA
During the formation of the 2018 bottom however, that buyer volume preceded extra -20% downside
— Rekt Capital (@rektcapital) June 27, 2022
For Ether, il Capo says a drop to $700-$800 is possible.
Decreasing volume into resistance, and looking like a corrective move.
Next support: $700-800 https://t.co/MajQe7R2ms pic.twitter.com/hZpkmKjjgj
— il Capo Of Crypto (@CryptoCapo_) June 27, 2022