Bitcoin stagnates as whales continue to dump
Since reaching an all-time high of $ 69,000 in November 2021, the price of Bitcoin has been declining. The current downturn resulted in a low of $ 17,622 in June. A long lower wick was produced by the subsequent bounce.
The rejection confirmed the $ 19,200 support for the horizontal area. The region had previously functioned as resistance during the all-time high in 2017 and then again in January 2021. It is now expected to offer support.
Bitcoin is stuck under $ 20k
Since crashing through the crucial threshold last Tuesday, the largest cryptocurrency has failed to surpass $ 20,000. Bitcoin has remained above $ 18,000, the lowest it reached at the bottom of a sale in mid-June, although it is still trading at less than a third of the highest record, which was over $ 69,000 in November 2021.
The Bulls tried to push the currency back up the chart and towards $ 22,000, but strong sales brought it down to $ 19,000 instead. The key support level for the coin was $ 17,000, and if bears continued to push their attacks, BTC may be able to move higher in subsequent trading sessions. The market value of all cryptocurrencies is currently $ 914 billion, up 0.3% from the previous day.
BTC’s price on the four-hour chart was $ 19,000. Before an attempt to recover on the chart a few weeks ago, the BTC / USD pair traded at the same level. Opposition to BTC first appeared at $ 22,000 and later at $ 20,000.
The $ 22,000 level has given BTC considerable resistance, and the coin has had trouble trading over it for an extended period of time.
If the current price trend for BTC holds, $ 17,000 will be the next very soon.
The BTC / USD had a sharp decline in trading volume, and the bar on the chart turned red, indicating bearishness. Sales pressure has dominated the market.
However, the overall picture is still negative as there are no signs of tightening of financial conditions from the central banks in the stock markets. After failing a slight rise upwards last week, BTCUSD is still below the 200-week average on the weekly charts.
A historical quirk, the RSI on the weekly charts is still oversold. Unfortunately, this does not indicate that it is now a better time for the bulls to enter. In theory, a continued transition from the extreme to the normal will indicate a buy signal.
BTC/USD Slides below $20k. Source: TradingView
In the second quarter of 2022, bitcoin was the worst performer in eleven years. Investor Michael Bury, who correctly predicted the mortgage crisis in 2007, acknowledges that BTC and equities are only in the middle of a bear market cycle.
The current collapse of the cryptocurrency market, according to Changpeng Zhao, CEO of the cryptocurrency exchange Binance, is a good time to invest in bitcoin. According to him, traders who can persevere through the current bear market will see their investments grow in the following bullish phase.
In addition, complicating issues are the absence of demand from institutional investors, international restrictions and the collapse of critical levels of support.
Related reading | Bitcoin is struggling with $ 19K, is $ 17K the next target?
Whales dump
According to data from the chain company Glassnode for cryptocurrency, the weekly moving average of distinct Bitcoin addresses peaked with a loss on July 3, 2022, with 18.8 million. According to data, the current massacre has led the average Bitcoin holder to suffer its biggest monthly loss since 2011.
Number of Addresses in Loss. Source: Glassnode
According to analysts at CryptoQuant, the Whale Ratio target, which shows the sales trends of large wallet holders, predicts that the price of bitcoin will soon bottom out. The 10 best inflows of bitcoin to stock exchanges are divided by the total daily inflow to arrive at the whale ratio indicator. High values of the measure reflect changes in the price.
The analyst pointed out that whales are rapidly transferring their Bitcoin holdings to cryptocurrency exchanges and are suffering significant losses.
Related reading | TA: Bitcoin remains in a downward trend, which could lead to a sharp upside
Featured image UnSplash, chart from TradingView.com
