Choose country & language:

Bitcoin plummets on increased risk-aversion sentiment

Home >  Daily Market Digest >  Bitcoin plummets on increased risk-aversion sentiment

Written by:
Myrsini Giannouli

29 June 2022
Share the article

Increased risk-aversion sentiment on Tuesday drove stock markets and crypto markets down. Global recession concerns have been driving riskier assets down, putting pressure on cryptocurrency prices. Crypto markets have been known to follow the overall trends of stock markets and especially of tech stocks. 

Bitcoin price fell below the $21,000 level on Tuesday, and it is currently struggling to hold on to the $20,000 key level. If Bitcoin price declines, support may be found at $19,200 and further down at the psychological level of $15,000, while resistance may be found near $23,000 and $32,300. 

Ethereum price also plummeted on Tuesday, falling below the $1,200 level. If the Ethereum price continues to fall, support may be found near the psychological level of $500, while resistance may be encountered at $2,000 and higher up at $2.170.

A steep cryptocurrency selloff was triggered in the past few weeks, as bearish tendencies have prevailed in crypto markets. The crypto industry has been under pressure since the beginning of the year and the results are becoming apparent, with mounting layoffs in crypto firms and huge losses in trading volumes.

Many market participants have decided to buy cryptocurrencies at their recent low prices, however, with expectations that they have reached the bottom. Traders are buying the dip for significant cryptocurrencies, preventing crypto markets from crashing. 

An increasing number of major Central Banks, such as the Fed and the BOE, are moving towards a tighter fiscal policy to tame soaring inflation rates. Stalling economic growth combined with fiscal tightening gives rise to fears of recession driving cryptocurrency prices down.

BTC/USD 1h Chart

BTCUSD 1hr chart


ETH/USD 1h Chart

ETHUSD 1hr chart

The content provided in this material and/or any other material that this content is referred to, whether it comes from a third party or not, is for information purposes only and shall not be considered as a recommendation and/or investment advice and/or investment research and/or suggestions for performing any actions with financial products or instruments, or to participate in any particular trading strategy and cannot guarantee any profits. Past performance does not constitute a reliable indicator of future results. TopFX does not represent that the material provided here is accurate, current, or complete and therefore shouldn't be relied upon as such. This material does not take into account the reader's financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of TopFX, no reproduction or redistribution of the information provided herein is permitted.

Written by:
Myrsini Giannouli

Share the article:

Latest news

Dollar plummets in the aftermath of Silicon Valley collapse

Myrsini Giannouli 14 March 2023

Gold soars as investors turn toward safe-haven assets

Myrsini Giannouli 14 March 2023

Oil prices turbulent amidst market chaos

Myrsini Giannouli 14 March 2023

Crypto markets volatile after Silicon Valley Bank collapse

Myrsini Giannouli 14 March 2023

Why TopFX



industry presence
as a Liquidity Provider


from 0.0 pips

and reliable execution



client funds



customer support

Open your Live Account in 3 Steps
Step 1

Fill in the registration
form and click
"Create account".

Step 2

Once you are in the client secure area, please proceed with uploading your Proof of Identity and Proof of Residence.

Step 3

When your live account is approved, you can deposit funds and start trading on your chosen platform!