After the Ethereum Merge, Bitcoin fell below $20,000 again. Due to this decline, bitcoin fell back below $20,000 for the third time in three months. It also gave credibility to the bears. The problem with cryptocurrency is not being able to get the support it needs, which has led to the current downtrend.
Bitcoin price drops to range lows
The price of bitcoin dropped several times in the past week. The Ethereum Merge had turned into a “buy the rumor” event which led to massive accumulation across the crypto market. The price of bitcoin dropped to below $20,000 shortly after.
The result was that the cryptocurrency’s pioneering technology fell to its lowest levels in three months. After reaching just over $19,000, bitcoin had dropped to its lowest level in three months. This was levels it hadn’t seen since June 2018. Bitcoin has failed to maintain above $18,000 since then and have not fallen to its June lows.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
The current decline in price is a byproduct of bitcoin’s inability to break above $22,500. It had been tested at that point and it suffered a major beating, sending its price down to $18,000. Although the digital asset managed to recover slightly from this loss, it was still unable to recover. The digital asset has fallen back towards $18,000 where bears are still holding down the fort.
Press for 2018 Levels
The current bitcoin price is still in a better position than the bear market bottoms. Bitcoin’s current price at just above $19,000 puts it right at its consolidation range between $17,500-$25,000, which has held for the past three months.
However, given the digital asset’s recent decline, it shows a draw towards the previous bear market cycle that would put it at a bottom of $12,000 if it sticks to this trend. The digital asset is under severe pressure due to the recent sell-offs.
The consolidation has continued in these areas has revealed that there is significant resistance at $22,500, and at the same time at $25,000. The decline in bitcoin’s price after testing the latter explains why it has fallen. This is the key point in any recovery trend.
If bitcoin falls below $17,500, it will fall to $12,000, before the bear market. If there’s a clear recovery trend, which takes bitcoin’s price over $25,000, then indicators indicate that this will result in a bullish breakout.
Featured Image from MARCA chart by TradingView.com
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