Bitcoin (BTC) price is making 2018 feel again as the old multi-year resistance level comes back with vengeance.
Bitcoin heads for pessimistic weekly close as $20,000 rejects
BTC tried to retake $20,000 as support on June 19 as the bulls faced the weekly red candlestick of $7,000.
$16,000 important for possible next move
TradingView data shows that Bitcoin was rejected at $20,000 before being sharply rejected at $17,592 on Bitstamp. Low liquidity is making for a rough weekend as Bitcoin drops to levels not seen since November 2020.
Meanwhile, it made the market feel 2018 again during the day while recouping some losses. Now, $20,000 acts as resistance again. Thus, for three years, from December 2017 to December 2020, the ATL level for Bitcoin was formed. It was also the first time that the same Bitcoin price had retraced below the ATH level of the previous halving cycle.
However, despite the panic, some seasoned analysts continue to watch historical bear market patterns. Market commentator Holger Zschaepitz said of the recent analysis:
To put things into perspective: A 74% Bitcoin crash as it currently is is nothing out of the ordinary. There have been 4 crashes in history where it went >80% from peak to bottom.
In terms of positive moves from the future, attention is on $17,000 as a potential short-term target. Meanwhile, a short squeeze is away for now, as popular Twitter account Credible Crypto points out. The analyst says:
There doesn’t seem to be any jamming at first. So, let’s take off the bandage and get this done!
Meanwhile, fellow analyst Rekt Capital added that Bitcoin’s 200-week moving average (MA), a key support line in bear markets, is still operating as before.
Sellers dump cryptocurrencies at record loss
However, at around $7,000, the red candle of the week was set as one of the largest in Bitcoin history in dollar terms.
Data from on-chain analytics platform Coinglass shows that June 2022 is shaping up to be the worst on record. The firm also added that it even surpassed 2013 in terms of losses.
According to figures from Glassnode, more BTC was sold at a loss in the three days leading up to June 19 than any other time, a sign of investor pressure from spot price performance. Additional concerns focus on the financial viability of Bitcoin miners. As Kriptokoin.com , we have discussed the possible consequences in this article. However, not everyone agreed that network participants felt distressed to the extent that capitulation would entail.
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