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Thursday, October 6, 2022

Bitcoin Price Has Been Heading Towards Dismal Weekly Close

Bitcoin did try its best to reclaim the resistance zone of $20,000 as the support on the 19th of June saw the market bulls facing a $7,000 weekly red candle. According to the information that was received from TradingView and Cointelegraph Markets Pro, it was understood that the exchange had been rising from its lows of $17,952 on Bitstamp before it ended up being rejected quite firmly at the price of $20,000.

The trading conditions under low liquidity had definitely created a grim weekend for the holders as the largest cryptocurrency fell to levels that had not been seen since November of 2020. Although the cryptocurrency had recovered quite a few losses, there was this lingering sense of deja vu that had pervaded the market on that particular day. $20,000 had turned in as resistance, which did form an all-time high for BTC for three years from December 2017 to December 2020. 

Bitcoin Price Crashes Despite Efforts From Market Bears

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Although several investors panicked regarding the situation of Bitcoin, most of the seasoned participants in the market did remain quite understanding of the recent price action- which still did correspond with the historical bear market patterns. Holger Zschaepitz, one market commentator, remarked that a crash of 74% for the cryptocurrency was definitely not something that was unusual. Historically, there had only been four such dramatic collapses that saw the leading cryptocurrency go from peak to trough by >80%. 

As a mark of what did lie ahead, most of the attention was then focused on $17,000 as a potential target for the short term. A short squeeze higher, the popular Twitter account Credible Crypto noted, was definitely not on the menu. Rekt Capital, a fellow analyst, and trader went on to add that the 200-week moving average for Bitcoin was definitely a key support line in most bear markets.

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