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

Bitcoin (BTC) tried to reclaim $20,000 as assist on June 19 as bulls confronted a $7,000 weekly crimson candle.

BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView

$16,000 eyed for potential subsequent transfer

Information from Cointelegraph Markets Professional and TradingView confirmed BTC/USD rising from lows of $17,592 on Bitstamp earlier than being firmly rejected at $20,000.

Low-liquidity buying and selling circumstances had made for a grim weekend for hodlers as the biggest cryptocurrency fell to ranges not seen since November 2020.

Whereas recovering some losses, a way of deja vu pervaded the market on the day. $20,000 had returned as resistance, this having shaped an all-time excessive for Bitcoin for 3 years from December 2017 to December 2020.

It was additionally the primary time that BTC/USD had retreated below a earlier halving cycle’s all-time excessive.

Whereas some panicked, nevertheless, seasoned market members remained broadly understanding of latest value motion, which nonetheless corresponded with historic bear market patterns.

“To place issues into perspective: A Bitcoin crash of 74% as at current is nothing uncommon,” markets commentator Holger Zschaepitz acknowledged.

“In historical past, there have already been 4 collapses by which the main cryptocurrency went from peak to trough by >80%.”

By way of what may like forward, consideration targeted on $17,000 as a possible short-term goal. A brief squeeze larger, as fashionable Twitter account Credible Crypto famous, was not on the menu.

Fellow dealer and analyst Rekt Capital in the meantime added that Bitcoin’s 200-week transferring common (MA), a key assist line in bear markets, was nonetheless functioning as earlier than.

Sellers offload cash at a document loss

At round $7,000, nevertheless, the week’s crimson candle was set to be the one of many largest in Bitcoin’s historical past in greenback phrases.

Associated: GBTC premium hits -34% all-time low as crypto funds ‘puke out’ tokens

BTC/USD month-to-month returns chart. Supply: Coinglass

Information from on-chain analytics platform Coinglass added that June 2022 was shaping as much as be the worst on document, beating even 2013 when it comes to losses.

As an indication of investor strain ensuing from spot value efficiency, extra BTC was bought at a loss within the three days to June 19 than at another time, in accordance with figures from on-chain analytics agency Glassnode.

Further considerations targeted on the monetary buoyancy of Bitcoin miners. Not everybody, nevertheless, agreed that community members have been feeling the pinch to the extent that capitulation would consequence.

The views and opinions expressed listed below are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails danger, it’s best to conduct your personal analysis when making a call.