Bitcoin heads for dismal weekly shut as BTC value 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). Source: TradingView

$16,000 eyed for attainable subsequent transfer

Data from Cointelegraph Markets Pro 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.

While 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 3 years from December 2017 to December 2020.

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

There’s a primary first all the pieces. This is the primary time Bitcoin has traded under prior cycle highs. I feel it is honest to say issues are totally different now.

— Charles Edwards (@caprioleio) June 18, 2022

While some panicked, nevertheless, seasoned market individuals remained broadly understanding of latest value motion, which nonetheless corresponded with historic bear market patterns.

“To put 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 wherein the main cryptocurrency went from peak to trough by >80%.”

In phrases of what may like forward, consideration targeted on $17,000 as a possible short-term goal. A brief squeeze increased, as common Twitter account Credible Crypto famous, 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

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.

No matter how a lot of an excessive time this appears to be for #BTC

Historically $BTC tends to wick between -14% to -28% under the 200-week MA

BTC has depraved -21% under the 200 MA to this point, nonetheless throughout the historic vary & not out of the unusual in that respect#Crypto #Bitcoin pic.twitter.com/cJm5A9yYYO

— Rekt Capital (@rektcapital) June 19, 2022

Sellers offload cash at a report loss

At round $7,000, nevertheless, the week’s crimson candle was set to be the one of many largest in Bitcoin’s historical past in greenback phrases.

Related: GBTC premium hits -34% all-time low as crypto funds ‘puke out’ tokens

BTC/USD month-to-month returns chart. Source: Coinglass

Data from on-chain analytics platform Coinglass added that June 2022 was shaping as much as be the worst on report, 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 have been accrued 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 value efficiency, extra BTC was offered at a loss within the three days to June 19 than at some other time, in line with figures from on-chain analytics agency Glassnode.

Additional considerations targeted on the monetary buoyancy of Bitcoin miners. Not everybody, nevertheless, agreed that community individuals have been feeling the pinch to the extent that capitulation would end result.

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

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