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

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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.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of TSWT.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.