Even after the weekend’s recovery, Bitcoin is still struggling to maintain the $20,000 mark. The market has fallen further into the bearish market as a result. It trades at extremely critical levels that will dictate the market’s movement over the next few weeks. These are the two major points: the $20,000 support and 200-week moving average.
Bitcoin is becoming bearish
At the time this article was written, bitcoin’s current price ranges between $20,000 and $20,000 with drawdown. It is crucial to forecast bitcoin’s price at this level. This is despite bulls already having support at 20,000.
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The 200-week moving mean, which is below the current digital asset’s trading price is another critical technical level. The 200-day moving median is below which this marks the lowest price for Bitcoin in its history. This represents one of most bullish markets ever seen. There is significant resistance at the 200-week moving mean, which averages $22,500.
If the digital asset wants to return to a bulltrend, $22,500 is the mark to beat. Resistance is growing even lower than this point. The bitcoin price was at $21,500 in the last few days.
BTC Price Holds $20,000 Despite a tumultuous market | Source: BTCUSD on TradingView.com
The market has also seen more sell-offs due to the price of digital assets falling below its 200-week moving mean. Coinbase, a centralized exchange that has seen large inflows over the past few days, is displaying these sell-offs.
Sentiment refuses to change
Recent market sentiment regarding bitcoin and other cryptocurrency has been extremely negative. The market sentiment surrounding bitcoin and other cryptocurrencies has been extremely negative for the entire month of June. Investors refuse to change their decision not to move funds to the market.
Institutional investors have begun to withdraw from the digital marketplace in masse, echoing this sentiment. Even the decline in price to levels some would consider a ‘discount’ has not done much to combat this negative sentiment. The previous week saw an outflow of $453 million from institutional investors.
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In addition, there is increasing interest in short-term BTC positions. ProShares Short Bitcoin’s attention has increased over the week. In the first week, more than $18million had been transferred to the ETF.
Bitcoin currently has a trend of $20,000 as of the writing. If this trend continues, $16,500 will provide the next major support. That could cause shocks to the market.
Featured image by Bitcoinist. Chart from TradingView.com
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