Bitcoin bulls are losing control as BTC price movement remains solidly below a significant long-term trendline.
Bitcoin (BTC) experienced a significant shift in sentiment on June 22, as multi-day highs gave way to a new drop below $20,000.
BTC may accumulate below a critical trendline
According to TradingView data, BTC/USD immediately halted its recent gains and dropped to $19,947 on Bitstamp.
The day prior, the largest cryptocurrency surpassed $21,700, which was its highest performance since June 16; however, momentum dropped throughout Wall Street trading.
According to prominent trader and researcher Rekt Capital, the inability of BTC/USD to retake its 200-week moving average posed a risk (MA).
Bitcoin formerly used the 200-week moving average as support, with wicks below it indicating macro price bottoms. The 200-week MA was a typical support line in past bad markets.
“If BTC is unable to retake the 200-week MA as support, then one of the possible outcomes would be a drop to new lows before the formation of an Accumulation Range for the first time below the 200-week MA,” he cautioned.
The 200-week moving average was $22,420 as of the time of writing.
Credible Crypto, a fellow trader, was more bullish about the short-term outlook, tweeting to his followers that he did not foresee the spot price falling significantly.
Nice reaction off of the bottom of our 16-20k demand zone. 12 hours of bleeding erased in 2. No confirmation this is the reversal yet though. Focus on key HTF levels and don't get too caught up staring at the red 5 minute candles- they can be erased in an instant. $BTC pic.twitter.com/VcK4EctM2D
— CrediBULL Crypto (@CredibleCrypto) June 18, 2022
Crypto Tony zoomed out and similarly highlighted the “demand zone” in which BTC/USD was now trading.
“On the macro scale, we may see a few phenomena. We clearly deviated from a distribution range. We are now evaluating the initial demand zone within this range. I anticipate a reaction, but there has not yet been a bottom,” he tweeted.
“A wick down to $17k – $15k appears likely”
Whales seek to lessen their BTC exposure.
For the largest BTC holders, on-chain data already revealed indications of change.
Not equivalent to hodling! More than fifty percent of Bitcoin addresses are still profitable.
According to on-chain monitoring firm Glassnode, Bitcoin whales deposited over 50,000 BTC to exchanges on June 20 and 21. This followed a single-day influx of 58,000 BTC on June 13.
Thus, whale wallet inflows remained elevated intraday, albeit they did not reach the levels seen during some past sell-offs.
On May 9, for instance, the same gang transferred more than 80,000 BTC to exchange accounts, the highest amount since March 2020.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.