Bitcoin (BTC), which was facing a $7,000 weekly red candle, attempted to reclaim $20,000 support on June 19.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
$16,000 for the next move
Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD rose from $17,592 on Bitstamp to $20,000.
Hodlers had a difficult weekend as low-liquidity trading conditions made it hard to trade. The largest cryptocurrency dropped to levels not seen since November 2020.
The market felt a bit like it was back in the past, even though it had recovered some losses. As resistance, $20,000 was returned. This had been the highest Bitcoin price for three years (December 2017 to December 2020).
It was also the first BTC/USD to fall below a previous halving cycle’s all-time high.
There is a first-first everything. This is the first time Bitcoin traded below its previous cycle highs. It’s safe to say that things have changed.
— Charles Edwards (@caprioleio), June 18, 2022
Some panicked, but seasoned market participants were able to understand recent price action which still corresponds with historical bear markets patterns.
Holger Zschaepitz, a market commentator, stated that a Bitcoin crash of 74% is not unusual.
“In history there have been four collapses where the top cryptocurrency fell from peak to bottom by more than 80%.”
As a short-term goal, $17,000 was the focus of attention. Popular Twitter account Credible Crypto pointed out that a short squeeze higher was not possible.
Looks like no squeeze first. Let’s just rip off the bandaid and move on! https://t.co/xliurgtPrO
CrediBULL Crypto (@CredibleCrypto), June 18, 2022
Rekt Capital, a fellow trader and analyst, said that Bitcoin’s 200 week moving average (MA), which is a crucial support line in bear market markets was still working as before.
No matter how much of an extreme time this seems to be for #BTC Historically $BTC tends to wick between -14% to -28% below the 200-week MA BTC has wicked -21% below the 200 MA so far, still within the historical range & not out of the ordinary in that respect#Crypto #Bitcoin pic.twitter.com/cJm5A9yYYO
— Rekt Capital (@rektcapital) June 19, 2022
Record-breaking loss for sellers: Coins sold off by sellers
The week’s red candle, which was valued at $7,000, was however set to be the largest in Bitcoin’s dollar history.
Related: GBTC Premium hits -34% record low as crypto funds ‘puke-out’ tokens
BTC/USD Monthly Returns Chart. Source: Coinglass
Coinglass, an on-chain analytics platform, added that June 2022 would be the most devastating month ever. It was worse than 2013, in terms of losses.
These three days represent the largest USD-denominated realized loss in #Bitcoin’s history. Investors who have accumulated coins at higher prices have locked in losses of $7.325B. A thread exploring this in more detail 1/9 pic.twitter.com/O7DjSK2rEQ
— glassnode (@glassnode) June 19, 2022
According to Glassnode, there was more BTC sold at a loss during the three-day period ending June 19, as a result of investor pressure due to spot price performance.
Other concerns were raised by the financial stability of Bitcoin miners. However, not everyone agreed that network participants felt the pinch to the point that capitulation was possible.
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