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
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.