Bitcoin (BTC) attempted to reclaim $20,000 as support on June 19 as the bulls faced a weekly red candle at $7,000.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

$16,000 in view of a possible next move

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD rising from lows of $17,592 on Bitstamp before being firmly rejected at $20,000.

Low liquidity trading conditions had created a gloomy weekend for hodlers as the largest cryptocurrency fell to levels not seen since November 2020.

While recovering some losses, a feeling of deja vu pervaded the market that day. $20,000 had returned as resistance, having formed a three-year all-time high for Bitcoin from December 2017 to December 2020.

It was also the first time BTC/USD had pulled back below the all-time high of a previous halving cycle.

However, while some panicked, experienced market participants continued to broadly understand the recent price action, which was still consistent with historical bear market patterns.

“To put things in perspective: a 74% drop in Bitcoin today is nothing unusual,” comments market commentator Holger Zschaepitz. admitted.

“In history, there have already been 4 crashes where the leading cryptocurrency went from peak to peak by more than 80%.”

In terms of what could happen in the future, the focus was on $17,000 as a potential short-term target. A little squeeze higher, as the popular Twitter account Credible Crypto pointed out, was not on the menu.

Meanwhile, trader and analyst Rekt Capital added that Bitcoin’s 200-week moving average (MA), a key support line in bear markets, was still working as before.

Sellers dump coins at record loss

However, at around $7,000, the red candle for the week became one of the largest in Bitcoin history in dollar terms.

Related: GBTC Premium Hits -34% All-Time Low As Crypto Funds ‘Vomit’ Tokens

BTC/USD monthly return chart. Source: Coinglass

Data from on-chain analytics platform Coinglass added that June 2022 was shaping up to be the worst on record, even surpassing 2013 in terms of losses.

In a sign of investor pressure resulting from spot price performance, more BTC was sold at a loss in the three days to June 19 than at any other time, according to figures from on-chain analytics firm Glassnode.

Additional concerns centered around the financial buoyancy of Bitcoin miners. Not all, however, agreed that network participants were feeling the pinch to the extent that it would result in capitulation.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should do your own research when making a decision.

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