Bitcoin falls below $20,000 as whales transfer 50,000 BTC to exchanges

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.

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.

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