Bitcoin (BTC) Tests 18-Month Low Near $22,600: More Declines to Come?

Bitcoin (BTC) keeps plummeting across the board, testing an 18-month low near $22,700 amid a strong sell-off seen during Monday’s session. According to recent reports, MicroStrategy could receive its first margin call when the price falls below $22,584.

The global market cryptocurrency market capitalization has plunged below $1 trillion for the first time since January 2021. Now, the crypto sphere is $140 billion away from the bottom of 2021, according to the latest charts coming from TradingView.

According to data from crypto analytics firm Coinglass, $316 million worth of cryptocurrencies have been liquidated in the past four hours alone. With macroeconomic conditions worsening and the Celsius imbroglio, the cryptocurrency market has been battered.

The sell-off has triggered fears in the crypto industry during the day, leading major cryptocurrency exchanges like Binance to halt their Bitcoin withdrawals amid heavy market volatility temporarily. Changpeng Zhao, Binance’s CEO, commented that clients’ funds are safe, and the suspension is linked to a backlog. As of press time, the withdrawals have resumed.

However, this is a normal pattern across major crypto exchanges when market volatility sparks across the board. Also, Celsius, a popular lending platform, announced on Monday that it had halted all withdrawals, leading its native token CEL to decline over 50% on the news. Moreover, Celsius disabled swaps and transfers between different accounts amid the current crypto bloodbath.

Aave, a decentralized finance platform, withdrew roughly $250 million from the FTX exchange before the announcement. No explanation has been given for such a move as of press time.

Even policymakers have reacted around the world to the crypto plunge. "If you want to invest in these assets, okay, but be prepared to lose all your money," Andre Bailey, the Bank of England Governor, told the British Parliament's Public Accounts Committee.

Bitcoin is on the verge of reaching critical levels tested during December 2020, where it found resistance, now support, at around $19,000. If the price pierces below that area, eyes will be on the next support area set at $17,715, where November’s lows are found, followed by the critical psychological level of $17,000.