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Bitcoin Stagnates As Whales Continue To Dump
Since hitting an all-time high of $69,000 in November 2021, the price of Bitcoin has been declining. The current decline resulted in a low of $17,622 in June. A long lower wick was produced by the subsequent bounce.
The bounce confirmed the $19,200 horizontal area’s worth of support. The region had previously served as resistance during the all-time high of 2017 and then again in January 2021. It is now anticipated to offer support.
Bitcoin Stuck Below $20k
Since crashing through that crucial threshold last Tuesday, the largest cryptocurrency has been unable to surpass $20,000. Bitcoin has stayed above $18,000, the lowest it reached during the trough of a selloff in mid-June, even if it is still trading at less than one-third of its all-time high, which was above $69,000 in November 2021.
Bulls tried to drive the currency back up the chart and towards $22,000, but a strong sell-off brought it down to $19,000 instead. The important support level for the coin was $17,000, and if bears continued to press their attacks, BTC may be able to move higher in the ensuing trading sessions. The market capitalization of all cryptocurrencies is currently $914 billion, up 0.3% over the previous day.
BTC’s price on the four-hour chart was $19,000. Prior to making an attempt to recover on the chart a few weeks ago, the BTC/USD pair traded at the same level. Resistance for BTC first appeared at $22,000 and later at $20,000.
The $22,000 level has presented BTC with significant resistance, and the coin has had difficulty trading above it for a lengthy period of time.
If the present price trend for BTC holds, $17,000 will be the next very soon.
BTC/USD had a sharp decline in trade volume, and the bar on the chart turned red, signifying bearishness. Selling pressure has dominated the market.
However, the overall picture is still negative as there are no signs of tightening financial conditions by central banks in the equity markets. After failing a feeble ascent upward 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 moment for the bulls to enter. In theory, a continued transition from the extreme to the norm would indicate a buy signal.
BTC/USD Slides below $20k. Source: TradingView
The second quarter of 2022 saw bitcoin’s worst performance in eleven years. Investor Michael Bury, who correctly forecasted the 2007 mortgage crisis, acknowledges that BTC and stocks are only in the middle of a bear market cycle.
The current collapse of the cryptocurrency market, according to Changpeng Zhao, CEO of cryptocurrency exchange Binance, is a favorable time to invest in bitcoin. According to him, traders who can persevere through the current bear market will see their investments grow during the following bullish phase.
Additionally complicating issues are the absence of institutional investor demand, international restrictions, and the collapse of critical support levels.
Related reading | Bitcoin Struggles At $19K, Is $17K The Next Target?
According to data from cryptocurrency on-chain company Glassnode, the weekly moving average number of distinct Bitcoin addresses at a loss peaked on July 3, 2022, at 18.8 million. According to data, the present massacre has caused the average Bitcoin holder to suffer their greatest monthly loss since 2011.
Number of Addresses in Loss. Source: Glassnode
According to analysts at CryptoQuant, the Whale Ratio measure, which shows the selling tendencies of big wallet holders, predicts that the price of bitcoin will shortly bottom out. The top 10 inflows of bitcoin to exchanges are divided by the total daily inflows to arrive at the whale ratio indicator. High values of the measure reflect changes in price.
The analyst pointed out that whales are quickly transferring their Bitcoin holdings to cryptocurrency exchanges and suffering significant losses.
Related reading | TA: Bitcoin Remains In Downtrend, What Could Spark Sharp Upside
Featured image UnSplash, chart from TradingView.com
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