Since it reached an all-time high of $69,000 in November 2021, the price of bitcoin has fallen. The current decline led to a drop of $17,622 in June. A long lower fuse was produced by post recoil.
The bounce confirmed the horizontal support at $19,200. The area previously acted as resistance during its all-time high in 2017 and then again in January 2021. It is now expected to provide support.
Bitcoin stuck below $20,000
Since passing this critical threshold last Tuesday, the largest cryptocurrency has not been able to cross $20,000. Bitcoin remains above $18,000, its lowest during mid-June selling lows, even if it is still trading less than a third of its all-time high, which was above $69,000 in November 2021.
The bulls tried to push the coin higher up the chart towards $22,000, but a strong sell-off brought it down to $19,000 instead. The important support level for the coin was $17,000, and if the bears continue to pressure their attacks, BTC may be able to rally in the following trading sessions. The market capitalization of all cryptocurrencies is currently $914 billion, up 0.3% from the day before.
The price of BTC on the four-hour chart was $19,000. Before trying to recover on the chart a few weeks ago, the BTC/USD pair was trading at the same level. Resistance for BTC first appeared at $22,000 and later at $20,000.
The $22,000 level BTC offered significant resistance, and the coin found it difficult to trade above it for an extended period of time.
If the current price trend of BTC continues, $17,000 will be next very soon.
The BTC/USD pair has seen a sharp drop in volume, and the bar on the chart has turned red, indicating a downward trend. Selling pressure dominated the market.
However, the overall picture remains negative as there are no signs of tightening financial conditions by central banks in the equity markets. After failing to rally last week, BTCUSD is still below the 200-week average on the weekly charts.
From historical oddity, the RSI on the weekly charts remains in the oversold territory. Unfortunately, this does not indicate that it is time for the bulls to enter. In theory, a continuous transition from the maximum to the base indicates a buy signal.
BTC/USD Slides below $20k. Source: TradingView
The second quarter of 2022 saw Bitcoin’s worst performance in eleven years. Investor Michael Burry, who correctly predicted the 2007 mortgage crisis, acknowledges that bitcoin and stocks are only in the middle of a bear market cycle.
The current collapse of the cryptocurrency market, according to Changpeng Zhao, CEO of crypto exchange Binance, is a good time to invest in Bitcoin. According to him, traders who can persevere through the current bear market will see their investments grow during the next bullish phase.
In addition, the complex issues are the absence of institutional investor demand, international restrictions, and the collapse of critical support levels.
Related reading | Bitcoin Struggling at $19,000, Is $17,000 Next?
According to data from on-chain cryptocurrency company Glassnode, the average weekly moving number of lost Bitcoin addresses peaked on July 3, 2022, at 18.8 million. According to the data, the current massacre has caused the average bitcoin holder to suffer its biggest monthly loss since 2011.
Number of Addresses in Loss. Source: Glassnode
According to analysts at CryptoQuant, the Whale Ratio, which shows the selling trends of large wallet holders, predicts that the price of Bitcoin will drop soon. The top 10 inflows of bitcoin to exchanges are divided by the total daily inflows to arrive at the whale ratio indicator. Higher values of the scale reflect changes in price.
The analyst noted that whales are rapidly transferring their bitcoin holdings to cryptocurrency exchanges and are experiencing significant losses.
Related reading | TA: Bitcoin is still in a downtrend, which could spark a sharp rally
Featured image UnSplash, chart from TradingView.com