Bitcoin (BTC) price tried to reclaim $20,000 as support on June 19 while the bulls were facing a weekly red candle at $7,000.
$16,000 as possible next move
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD rose from lows of $17,592 on Bitstamp before posting a firm rejection at $20,000.
Low liquidity trading conditions had created a gloomy weekend for hodlers as the main cryptocurrency fell to levels not seen since November 2020.
Although some losses were recovered, a sense of deja vu pervaded the trading day. $20,000 had returned as resistance, and this level had formed an all-time high for bitcoin for three years, from December 2017 to December 2020..
It was also the first time the BTC/USD pair had pulled back below an all-time high from a previous halving cycle.
There’s a first first everything. This is the first time Bitcoin has traded below prior cycle highs. I think it’s fair to say things are different now.
— Charles Edwards (@caprioleio) June 18, 2022
There is a first time in everything. It is the first time that bitcoin has traded below the highs of the previous cycle. I think it’s fair to say that things are different now.
Although some panicked, experienced market participants remained broadly sympathetic to recent price actionwhich still matched historical bear market patterns.
“To put things in perspective: A bitcoin drop of 74% like the current one is nothing unusual“, recognized market commentator Holger Zschaepitz.
“In history, there have already been 4 crashes where the leading cryptocurrency went from its peak to its trough by more than 80%.”
As for what might come, attention turned to $17,000 as a possible short-term target. A higher bullish pullback, as the popular Credible Crypto Twitter account pointed out, was not on the menu.
Looks like no squeeze first. Well then, let’s rip the bandaid off and get this over with! https://t.co/xliurgtPrO
— CrediBULL Crypto (@CredibleCrypto) June 18, 2022
It seems that there is no contraction first. Well, then, let’s rip the blindfold off and get this over with!
Fellow trader and analyst Rekt Capital, meanwhile, added that bitcoin’s 200-week moving average (MA), a key support line in bear markets, was still running 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
Never mind that it seems like an extreme time 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 regard
Sellers dump coins at record loss
Nevertheless, around $7,000, the red candle for the week was going to be one of the biggest in bitcoin history in dollar terms.
Data from on-chain analytics platform Coinglass added that June 2022 was shaping up to be the worst ever, surpassing even 2013 in terms of losses.
The last three consecutive days have been the largest USD denominated Realized Loss in #bitcoin history.
Over $7,325B in $BTC losses have been locked in by investors spending coins that were accumulated at higher prices.
A thread exploring this in more detail
1/9 pic.twitter.com/O7DjSK2rEQ— glassnode (@glassnode) June 19, 2022
The last three days in a row have been the largest realized USD loss in #Bitcoin history.
Over $7.325 million in $BTC losses have been locked in by investors spending coins that were hoarded at higher prices.
There is a thread that explores this in more detail.
As a sign of investor pressure stemming from spot price developments, in the three days to June 19 more BTC was sold at a loss than at any other timeaccording to figures from on-chain analytics company Glassnode.
Other concerns centered around the financial strength of bitcoin miners. Nevertheless, not everyone was in agreement in which the network participants were feeling the impact to the point of causing capitulation.
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