Bitcoin Heads For A Dismal Weekly Close, With BTC Price Rejected At $20,000

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

$16,000 targeted as possible next move

data from Cointelegraph Markets Pro It’s from TradingView showed BTC/USD rising from $17,592 on Bitstamp before being firmly rejected at $20,000.

Low liquidity trading conditions contributed to a dismal weekend for hodlers, with the biggest cryptocurrency dropping to levels not seen since November 2020.

While recouping some losses, a sense of deja vu gripped the market for the day. $20,000 returned as resistance, forming an all-time high for Bitcoin for three yearsfrom December 2017 to December 2020.

It was also the first time the BTC/USD pair pulled back from an all-time high of one half cyclo prior.

There is a first time for everything. This is the first time that Bitcoin has traded below previous cycle highs. I think it’s fair to say that things are different now.

— Charles Edwards (@caprioleio) June 18, 2022

While some panicked, however, savvy market participants continued to largely understand recent price action, which was still consistent with historical bear market trends.

“To put it into perspective: a 74% drop in Bitcoin right now is nothing out of the ordinary,” recognized market commentator Holger Zschaepitz.

“In history, there have been 4 crashes where the leading cryptocurrency has gone over 80%.”

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

Looks like there won’t be any pressure ahead. Well, let’s rip the bandage off and be done with it! https://t.co/xliurgtPro

— CrediBULL Crypto (@CredibleCrypto) June 18, 2022

Meanwhile, trader and analyst Rekt Capital added that Bitcoin’s 200-week moving average (MA), an important line of support in bear markets, it still worked as before.

No matter how extreme it seems for #BTC

Historically, $BTC tends to range between -14% and -28% below the 200-week MA

BTC is -21% below the 200 MA so far, still within the historical range and not out of the ordinary in this regard #Crypto #Bitcoin

— Rekt Capital (@rektcapital) June 19, 2022

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 history in dollar terms.

Data from on-chain analytics platform Coinglass added that June 2022 turned out to be the worst on record, even surpassing 2013 in terms of losses.

The last three days in a row have been the biggest realized dollar loss in #Bitcoin history.

Over $7.325 billion in BTC losses have been allocated by investors who have spent coins accumulated at higher prices.

A thread exploring this in more detail
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— glassnode (@glassnode) June 19, 2022

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 data from the on-chain analytics firm. Glassnode.

Other concerns centered on the financial buoyancy of Bitcoin miners. Not all, 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 Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.

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