Bitcoin heads for dismal weekly close as BTC price rejects at $20,000


Bitcoin (BTC) attempted to reclaim $20,000 as support on June 19 as bulls faced a red weekly candle of $7,000.

BTC/USD 1 hour candle chart (Bitstamp). Source: Trading View

$16,000 in sight for a possible next move

Data from TSWT Markets Pro and TradingView showed that BTC/USD rose from $17,592 on Bitstamp before being firmly rejected at $20,000.

Low liquidity trading conditions had created a grim weekend for hodlers as the biggest cryptocurrency fell to levels not seen since November 2020.

While recouping some losses, a sense of deja vu pervaded the market that day. $20,000 had returned as resistance, which formed an all-time high for Bitcoin for three years from December 2017 to December 2020.

It was also the first time that BTC/USD retreated below the all-time high from a previous halving cycle.

While some panicked, however, seasoned market participants remained largely aware of recent price action, which was still consistent with historical bear market trends.

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“To put things in perspective: a Bitcoin crash of 74% like it is now is not unusual,” market commentator Holger Zschaepitz comments. recognized.

“There have been 4 meltdowns in history where the leading cryptocurrency has gone from peak to trough by more than 80%.

As for what might happen, attention has focused on $17,000 as a potential short-term target. A short press higher, as noted by popular Twitter account Credible Crypto, was not on the menu.

Meanwhile, fellow trader and analyst Rekt Capital added that Bitcoin’s 200-week moving average (MA), a key support line in bear markets, was still working as before.

Sellers unload coins with record loss

At around $7,000, however, the red candle for the week was expected to be one of the largest in Bitcoin’s history in dollar terms.

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BTC/USD monthly returns chart. Source: Coinglass

Data from on-chain analytics platform Coinglass added that June 2022 is shaping up to be the worst on record, even beating 2013 in terms of losses.

In a sign of investor pressure stemming from spot price performance, more BTC was sold at a loss in the three days to June 19 than at any other time, according to figures from the on-chain analytics firm Glassnode.

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Other concerns centered on the financial buoyancy of Bitcoin miners. Not everyone, however, agreed that network participants felt the pinch to the extent that capitulation would result.

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