In June 2022, Bitcoin (BTC) recorded the worst monthly performance in history, what now?

June 2022 was brutal in terms of Bitcoin and broader market correction. The world’s largest cryptocurrency Bitcoin (BTC) collapsed by more than 37% and recorded the worst monthly performance since 2011.

Since then, Bitcoin has consolidated at around $ 20,000 levels. It has also been one of the worst quarterly results for Bitcoin, losing more than 60% in Q2 2022.

Online data provider Glassnode said that as US inflation projections remain high with clouds of possible recession, the market continues to be highly exposed. It has also been reflected in Bitcoin’s on-chain performance and network activity. Furthermore, as CoinGape reported, institutional traders have shorted Bitcoin sharply.

The Bitcoin price correction has shown striking similarities with the previous bear market bottoms in 2018 and 2020. However, there is not enough catalyst for the Bitcoin price reversal at present. Analysts at Glassnode wrote:

“The trend for bitcoin bottom formation is based on observable dominance of strong investors, historically significant lows in many macro oscillators, and a strong confluence of prices hovering at a striking distance from several bear market pricing models. But can these HODLs stay the line?”

Data on the chain show high conviction

In its report, Glassnode mentions that despite the price correction, there is still a high judgment for accumulation and self-storage. Currency balances have emptied at unprecedented rates. On the other hand, Bitcoin’s “shrimp and whale balances” are increasing significantly.

On the other hand, the activity in the chain indicates that the network activity and the number of users are approaching the deepest bear market. As Glassnode reports:

Address activity, for example, has fallen by 13% from over 1M / day in November, to just 870k / day today. This indicates little growth in new users, and even a struggle to keep existing ones.

It would be difficult to predict the Bitcoin bottom at this stage. If global macro conditions worsen, some market analysts expect the BTC price to go up to $ 15,000 and even below.

Bhushan is a FinTech enthusiast and has a good grasp of understanding the financial markets. His interest in economics and finance draws his attention to the new markets for blockchain technology and cryptocurrency. He is continuously in a learning process and stays motivated by sharing his acquired knowledge. In his spare time, he reads thriller novels and sometimes explores his culinary skills.

The content presented may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication has no responsibility for your personal financial loss.