Bitcoin on the verge of a break to lowest levels since 2020

With inflation remaining stubbornly high and the global economy poised to slow dramatically heading into this winter and beyond, the macroeconomic backdrop remains a major headwind for cryptoassets. With the 10-year Treasury yielding nearly 3.6% as of writing, interest rates are nearly as high as they’ve ever been for even the oldest cryptocurrency, Bitcoin.

Against that backdrop, it’s not surprising that Bitcoin is testing its lowest level since 2020 around $18,700. Even more concerningly, the chart has carved out a potential inverted “cup-and-handle” pattern over the course of this summer, suggesting that we could see another sharp move lower if support in the $18,000-$18,700 zone is broken.

The next significant level to watch below that zone would be previous-resistance-turned-support from the June 2019 highs around $14,000.

As the weather outside starts to cool, it reminds us that this “crypto winter” may be far from over.