Bitcoin (BTC) looked set to match its lowest monthly close since 2020 on Aug 28 as the bulls failed to take control.
The odds are stacking for a deeper dive below $20,000
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair crossing $20,000 with hours before the weekly candle completes.
The pair had been unable to make up lost ground over the weekend, and with just days left in the month, even $20,000 looked vulnerable as support.
At the time of writing, Bitcoin was trading near $19,900, down from the June closing price.
“It didn’t matter what kind of lines or doodles you had on your charts,” summarized over the weekend the on-chain monitoring resource Material Indicators along with supply and demand data from the Binance order book.
“After JPow punched the market in the face on Friday, BTC lost trend by breaking out of the June low. Now the question is whether that local low holds. Not enough supply liquidity currently in sight to get excited.”
Material Indicators was referring to the cascade of risky assets on August 26, resulting from aggressive comments from Jerome Powell, chairman of the US Federal Reserve.
Giving no sign of wanting to slow or reverse interest rate hikes in the future, Powell’s speech at the annual Jackson Hole economic symposium sent tremors through equity markets.. US stocks lost a total of $1.25 trillion that day.
Bitcoin suffered in tandem, and while some potential buyers came forward with plans to buy below $20,000, the consensus favored a further drop going forward.
The popular trader Anbessa I contemplated two scenarios on the day, one implying a support/resistance flip to continue higher and another pointing to a break to $16,000-$17,000.
“We need to see a lot before this turns bullish,” fellow Crypto Tony added in part of his last update.
BTC Supply Held at a Loss Approaches 50%
For the On-Chain College analytics account, meanwhile, a sign of encouragement came from on-chain data covering hodler profitability.
The latest price drop lowered the ratio of BTC supply to profit, and that ratio was now approaching levels only seen in previous market macro funds.
“I have been waiting the entire bear market for the percentage of Bitcoin supply in profits to drop below 50%,” commented On-Chain College.
“In June, it bounced just above, at 50.28%. Currently, it is at 51.76%. This metric fell below 50% in all previous bear markets + March 2020.”
As Cointelegraph reported over the weekend, hodlers continue to cold store the BTC supply with growing conviction.
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