Participants have been looking at price charts for relief after a long, cold winter in crypto bear markets. The top crypto assets, bitcoin and ether, have been trading rangebound at lower support levels for more than a month.
Traders and investors are desperate to make a profit, as a result of the market’s stagnancy. The crucial question is whether or not the crypto markets will see a rebound in the next quarter of 2022.
Additional Losses in the Second Quarter
The June price action of Bitcoin was one of its worst in history. It saw the price of BTC drop by 38% in the last month. Both short-term and long-term losses have driven out short-term holders, as well as newcomers, and left only the steadfast HODLers.
In a recent report by Glassnode, analysts pointed out that the price action of top crypto only competed with the 2011 bear markets for the title of the worst month. BTC prices were below $10 in 2011 to give an idea of scale.
The Bitcoin price has remained stable over the past week, coping with losses and maintaining a rangebound momentum at the 2017 all time high of $20,000.
The price of bitcoin fell to $18,741 at midweek, before rising to $19,139 by the close of the week. Bitcoin traded at $19 926 as of press time. This represents 4.20% gain on the daily price window.
The top asset trading is 71.20% lower than its record high of $69,000. However, current price action remains in the tighter $21,600 range and lower $18,550 range.
Are Bitcoin and Ether Losses Possible?
Despite the acceleration of the new quarter, there were no positive changes in overall sentiment. Many newcomers were surprised to learn that analysts believe bitcoin and ether may suffer further losses in the weeks ahead.
BTC and ETH are now worse than they were a full year ago. As the macroeconomic environment in financial markets worsened, both bitcoin and ether ended Q2 2022 with negative quarterly gain.
While the Federal Reserve kept raising interest rates and aiming to reduce inflation, it severely affected crypto’s growth and market cap. Cryptos may face difficult times ahead, as there are increasing recession fears.
Nomura, a Japanese financial services company, stated Monday in a note that major economies could fall into recession “in the next 12 month amid tightening government policies. Investors and traders are also concerned by such recession narratives.
Bitcoin suffered a quarter-toquarter loss of more than 57% while ether lost 67%. It is possible to see that the price movement of the top two assets could indicate that ETH and bitcoin could experience a sharper decline over the quarter.
Historical price data has shown that BTC fell by 68%, 40% and 2.8% during the bear markets of 2014, 2018, and 2018. These data show that third quarters have not always been pleasant for bitcoin, and therefore the larger market.
Future price performance of bitcoin and ether and their recovery will depend on macroeconomic conditions, strong hands in market, and whether the price moves towards recovery.