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

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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 attainable subsequent transfer

Knowledge 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 situations 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 fashioned an all-time excessive for Bitcoin for three years from December 2017 to December 2020.

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

There is a first first every thing. That is the primary time Bitcoin has traded beneath prior cycle highs. I feel it is truthful to say issues are completely different now.

— Charles Edwards (@caprioleio) June 18, 2022

Whereas some panicked, nonetheless, seasoned market members remained broadly understanding of latest price 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%.”

When it comes to what may like forward, consideration centered on $17,000 as a possible short-term goal. A brief squeeze increased, as fashionable Twitter account Credible Crypto famous, was not on the menu.

Seems like no squeeze first. Nicely then, let’s rip the bandaid off and get this over with! https://t.co/xliurgtPrO

— CrediBULL Crypto (@CredibleCrypto) June 18, 2022

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.

Regardless of how a lot of an excessive time this appears to be for #BTC

Traditionally $BTC tends to wick between -14% to -28% beneath the 200-week MA

BTC has depraved -21% beneath the 200 MA up to now, nonetheless inside the historic vary & not out of the atypical in that respect#Crypto #Bitcoin pic.twitter.com/cJm5A9yYYO

— Rekt Capital (@rektcapital) June 19, 2022

Sellers offload cash at a file loss

At round $7,000, nonetheless, 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

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

The final three consecutive days have been the biggest USD denominated Realized Loss in #Bitcoin historical past.

Over $7.325B in $BTC losses have been locked in by traders spending cash that had been gathered at increased costs.

A thread exploring this in additional element
1/9 pic.twitter.com/O7DjSK2rEQ

— glassnode (@glassnode) June 19, 2022

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

Extra issues centered on the monetary buoyancy of Bitcoin miners. Not everybody, nonetheless, agreed that community members had been feeling the pinch to the extent that capitulation would outcome.

The views and opinions expressed listed here are solely these of the creator and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails threat, you need to conduct your personal analysis when making a choice.

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