Yesterday's attempt by Bitcoin to rise from the level of $22,250 and overcome the resistances of $22,800 and $23,000 was beyond its strength. Active bears lowered the price to $20,293 (the weighted average price of the spot market according to CoinMarketCap data). Since June 17, the price has started an upward correction, thanks to the support of buyers in the zone 20 200 – 20 000 US dollars.
Analysts see the nearest resistance to the upward movement of Bitcoin near the level of $20,850 and the nearest stronger resistance at the level of $21,550.
At the moment, there is still a risk of price reduction to the level of $18,800.
Cryptozima has absorbed 24 percent of the total capitalization of the cryptocurrency market in the last week alone. Bitcoin has fallen in price by 35 percent during this time.
According to the information provided by CoinGecko on the CoinGoLive database, 72 of the top 100 cryptocurrencies by capitalization have lost about 90 percent of the market price relative to their historical highs. Bitcoin has declined in price relative to its November ATH by 70.3 percent, Ethereum (ETH) has dropped from a historic high ($4,878) by 78 percent.
The difficult state of the cryptocurrency market, which lost $1.5 trillion in 2022, is aggravated by the identification of the insolvency of companies that are engaged in banking in a DeFi/CeFi bundle, offering customers high returns in cryptocurrency.
The crypto market, which received severe consequences in May after the collapse of the Terra ecosystem and the irrevocable withdrawal from the market of its algorithmic stablecoin TerraUSD (UST) with a total loss of $ 50 million, lives in anticipation of new bankruptcies of cryptocurrency companies.
A few days ago, in the DeFi ecosystem, the staking and lending platform for cryptocurrencies, Celsius Network, (which offers clients a yield of 18 percent on deposits), without explanation, brought wBTC, Ethereum (ETH) and other crypto assets worth more than a quarter of a billion dollars to the FTX exchange, and also suspended users' access to their funds for withdrawal. The opaque actions of Celsius and the withdrawal of almost half of its assets from the platform by its clients since October 2021 lead service users to think about problems related to insolvency.
At the same time, the Singapore hedge fund Three Arrows Capital (3AC), which did not satisfy margin requirements, suffered liquidation on the exchanges in the amount of at least $400 million. According to media reports, the company may also have a $183 million debt against a $235 million collateral position in the staking Ether.
As he writes Cointelegraph.com , DeFi has a significant amount of Celsius funds blocked on various platforms, including Aave, and 3AC is a major borrower. If the hedge fund becomes insolvent, its economic risks will infect partners and spread throughout the ecosystem of decentralized finance, which will affect the entire crypto industry.