As Bitcoin and Ethereum reached their lowest values in years, the co-founder of BitMEX forecasts more losses if the two assets pass critical support levels.

Arthur Hayes disclosed Bitcoin is creating a base near $20,000 while Ethereum is seeking to restrict its losses to $1,000 as the bloodbath continues. In a recent Twitter post, Hayes warned that a decline below these levels could be worse for the two.

With inflationary fears dragging down portfolios, investors are not just selling bonds and reducing their equity exposure, but they are also selling crypto-assets. The current pessimism is influencing a significant selloff.

The former CEO of BitMEX indicated that a violation of the aforementioned limits will likely result in huge selling pressure on the spot markets as dealers hedge their positions.

However, there is also the possibility that many OTC traders fail to hedge and cover their holdings, resulting in further selling pressure on Bitcoin and Ethereum.

The speculations of possible insolvency at Celsius placed a great bearish pressure on prices that were already depressed because of Friday's CPI release, which weighed on the market.

QCP Capital, a company that trades in crypto-assets, has identified comparable liquidation levels that market participants must watch out for.

"As far as the charts are concerned, you had better pull out your Lord Satoshi prayer book and hope the lord has mercy on the cryptocurrency markets. Because if these levels fail, you may as well turn off your computer because your charts will be useless for some time," Hayes said.

Since the LUNA debacle, the crypto market has expressed alarm over the impending collapse of a big credit player.

The market is currently in a state of fear over the potential impact and contagion of Celsius's insolvency.

The crypto market is also keeping an eye on 1,150 in ETH, 0.8 in stETH/ETH, and 20,000 in BTC as major liquidation levels. "We are getting dangerously close," Hayes added.

Popular analyst "Rekt Capital" speculated that Bitcoin may be "doing Macro Double Bottoms at the 200-week moving average" while noting that Bitcoin's 200-week moving average has traditionally provided a strong level of support for bear market surrender.

According to Rekt Capital, Bitcoin is close to forming its first "Macro Bottom" around the 200-week moving average near $23,000, should this scenario play out.

Should this fail, Bitcoin might experience even greater losses.

In such situation, anonymous on-chain data analyst "whalemap" predicted that the cryptocurrency's "ultimate max pain bottom" might occur at $13,331.