The Bitcoin price has fallen since it reached an all-time record $69,000 in November 2021. In June, the Bitcoin price fell to $17.622. Following bounces produced an even longer wick.
The bounce confirmed the $19,200 horizontal area’s worth of support. It had served resistance at the 2017 all-time peak and again in January 2021. The region is expected to provide support.
Bitcoin Priced Below $20k
After crashing past that critical threshold on Tuesday, the biggest cryptocurrency was unable to cross $20,000. Bitcoin is trading above $18,000. This was the minimum it traded at during the selloff in June. However, it trades below one-third its previous high of $69,000 in November 2021.
The bulls attempted to push the currency higher up the charts and toward $22,000 but it was defeated by a strong selloff that brought it to $19,000. BTC might be able move higher as long as bears keep pressing their attacks. The $17,000 support level was important for the currency. Market capitalization for all cryptocurrency is $914 billion at the moment, an increase of 0.3% from yesterday.
BTC’s price on the four-hour chart was $19,000. Before making an effort to recover, BTC/USD traded at the exact same level. BTC’s resistance was first seen at $22,000 then later at $20,000.
BTC has faced significant resistance at $22,000 and has struggled to trade above that level for long periods of time.
If BTC continues to trend in its current price, $17,000 is likely to be the next.
BTC/USD saw a dramatic drop in trade volume. The bar turned red on the chart, which indicates bearishness. The market has been dominated by selling pressure.
However, overall the picture is negative because there are still no signs that central banks will tighten financial conditions in equity markets. Despite a modest rise upwards last week, the BTCUSD remains below the 200-week median on the weekly charts.
The RSI weekly chart is oversold, a historical anomaly. However, it does not necessarily mean the bulls are in a more favorable time to buy. The theory is that a transitioning from extreme to norm could signal a buy signal.
BTC/USD slide below $20K Source: TradingView
The second quarter of 2022 saw bitcoin’s worst performance in eleven years. Michael Bury (an investor) correctly predicted the 2007 mortgage crisis. He now acknowledges that BTC is in the middle of an bear market.
Changpeng Zhao CEO, Binance’s cryptocurrency exchange, believes that the collapse in cryptocurrency markets is a good time to make a bitcoin investment. He said that traders who are able to persevere in the current bear market, will be rewarded with increased investments during the bullish phase.
The lack of investor demand from institutions, restrictions on international trade, and collapse of support levels are all additional problems.
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Whales Dump
Glassnode’s data has shown that there was an 18.8 Million Bitcoin addresses losing each week, which is the highest weekly average of Bitcoin addresses. The average Bitcoin holder has suffered their largest monthly loss in a month since 2011, according to data.
Number of Loss Addresses. Glassnode
CryptoQuant analysts believe the Whale Ratio indicator, which displays the selling tendencies large wallet holders, is a predictor that bitcoin’s price will bottom soon. Divide the top 10 bitcoin inflows into exchanges by the daily total inflows and you arrive at the Whale Ratio indicator. The measure’s high values reflect price changes.
An analyst noted that whales were quickly moving their Bitcoin assets to cryptocurrency exchanges. This is causing them significant losses.
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Featured Image UnSplash chart by TradingView.com