Can Bitcoin rise like a phoenix after Black Monday?

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Can Bitcoin rise like a phoenix after Black Monday?

 Can Bitcoin rise like a phoenix after Black Monday?
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Bitcoin has had a torrid run of late. The Black Monday, as now many experts are calling it, has seen Bitcoin’s value suddenly tumble down to US$22,141.26 with a trading volume of US$68,204,556,440 on 13 June. On Tuesday, the leading crypto slid further setting a multiyear low of US$20,824 leaving the crypto market at US$941.64 billion with a volume of US$144.29 billion.

On 14 June, Bitcoin slid to a low of US$20,824, its lowest level since December 2020. Cryptocurrencies led by Bitcoin have been on a fast downslide since the tightening of the monetary policies around the world, which has drained liquidity from global markets. To make things worse, the Terra collapse in May further dented the market before it intensified after the 13 June crash with BTC/USD losing 22.4% of its value since the beginning of this week.

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With such drastic falls, several market participants have started raising questions about how soon can the crypto market recover from this bloodbath or whether Bitcoin will further fall hitting new lows?

Charts and forecasts

Crypto markets are not getting respite from extreme bearishness and sell-off pressure, which has been prevalent since April this year. In fact, even during the Terra fiasco, the situation wasn’t this bad as it is now. But with exchanges, like Binance and Celsius freezing withdrawals, the fear in the market is increasing. And despite Binance’s resumption, the market sentiments continued to be bearish.

Related read: Why are Terra (Luna), Terra Classic (LUNC) witnessing increased volatility?

The Bitcoin Fear and Greed Index indicates it is at its lowest at 8. A few experts suggest this slump has impacted the short-term holders the most. According to a blog from the market intelligence aggregator Blockware, the latest Bitcoin performance is one of the lowest readings in the short-term holder profit/loss ratio ever.

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Bitcoin’s RSI indicates that it is in an oversold position at 24.04 during the intraday trading session on Tuesday. This latest fall is roughly 60% below the monthly all-time high. According to crypto experts, the worst bitcoin monthly RSI was 43.7.

The MACD is also indicating a nosedive going ahead with the blue line creating significant gap with the signal line. It would an understatement that bears are in full control with no immediate signs for the bears to close the gap.

In fact, Bitcoin’s 50, 100 & 200 EMA (exponential moving averages), does indicate a slight improvement. But for that to happen, it needs to break the first resistance level of US$24,581.41.

Related read: Investors could lose all their money, warns Bank of England Governor

Image credit: Trading View

Bitcoin’s 50/100/200-day EMA indicates that it may rise to US$31,491, US$35067.18, and US$39,8987.78 going forward. But when will this happen, no one knows.  


Several cryptos are witnessing heightened volatility due to various reasons. For the leading crypto to recover, it will have to first regain its crucial support level and then gradually move its way up. The exact timeframe is still a puzzle, but as market participants, it’s crucial to take calculated moves, do thorough market research, and not get influenced by the panic of missing out.     


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