Bitcoin (BTC) was flat at the Wall Street open on June 20 as nervous traders awaited a short-term trend decision.
Trader Signals a Bitcoin “Macro Bottom Period”
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair rising to just under $21,000 at the time of writing, a three-day high.
The weekend had spooked most of the market and liquidated speculators with a trip to $17,600, marking Bitcoin’s lowest levels since November 2020.
Now, with US stocks calm at the start of the week, comparative calm has characterized the largest cryptocurrency.
“Good reaction from the bottom (floor) of our demand zone of USD 16,000 – 20,000”, commented the popular Credible Crypto trading account on the weekend’s price action.
“12 hours of bleeding erased in 2. However, there is no confirmation yet that this is the reversal. Focus on the key HTF levels and don’t get caught up in the red 5 minute candles; They can be erased in an instant.
When in doubt, zoom out
– Crypto Tony (@cryptotony__) June 20, 2022
When in doubt, look from a broader perspective
The idea of focusing on HTF, or longer term pricing structures, was shared by several commentators at the start of the week.
“The BTC is in a period of macro bottom formation for this cycle”, continuous the trader and analyst Rekt Capital.
“For years to come, investors will be rewarded for buying here. However, many are still waiting for $BTC to drop further to buy. It’s like waiting for summer to come, and finally it’s 33C outside, but now we’re expecting 35C.”
Rekt Capital further described a $20,000 BTC price as a “gift” for buyers.
“BTC data science shows that anything below $35,000 is an area that has historically produced superior ROI for long-term Bitcoin investors”said part of a Tweet that day.
The on-chain analysis resource Whalemap, for its part, highlighted the purchase by the main investors at levels below USD 20,000.
New whale level has formed over the weekend’s dump.
The accumulation is quite large, >100k BTC, and happened on the 18th of June.
Prior to that, a large portion of Dec 2018 Bitcoins have moved from the previous 4k bottom… Could be OTC
Looks like a great short-term support pic.twitter.com/rJbV26ZifG
— whalemap (@whale_map) June 20, 2022
A new whale level has formed during the weekend dump.
The accumulation is quite large, >100,000 BTC, and it happened on June 18.
Prior to that, a large portion of December 2018 bitcoins have moved from the previous bottom of 4,000… Could be OTC
Looks like great short-term support
PlanB: Bitcoin is simply “oversold”
Bitcoin is heading below its all-time high prior to its halving cycle, increasing pressure on and criticism of BTC’s popular Stock-to-Flow pricing models.
While market analyst Zack Voell openly called S2F a “scam” on social media, quantum analyst PlanB, its creator, maintained that the theory behind it was still sound.
“Most of the indicators (S2F, RSI, 200WMA, Realized, etc.) are at extreme levels”, explained in part of a Twitter post on June 18.
“Does that mean all indicators are ‘invalidated’ ‘debunked’? No. Investing is a game of probabilities and indicators give situational awareness: BTC is oversold.”
Voell’s comments came after the BTC/USD pair fell below the second standard deviation band relative to the S2F forecast price for the first time.
Bitcoin isn’t dead.
But the Stock-to-Flow scam absolutely is. pic.twitter.com/ZYZ0NR8n92
— Zack Voell (@zackvoell) June 19, 2022
Bitcoin is not dead.
But the Stock-to-Flow scam is.
As PlanB noted, Bitcoin’s relative strength index, or RSI, was at its lowest levels in history over the weekend. A classic overbought vs. oversold indicator, the RSI essentially suggests that the BTC/USD pair is trading much lower than its fundamentals warrant, based on historical context.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Each investment and commercial movement involves risk, you must do your own research when making a decision.
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