The king of cryptos in depression mode below $20,000? – What if next week were to lead to a Bitcoin (BTC) under a lower level? Many cryptocurrency investors did not expect to see this level again anytime soon – not to say never. But that was without counting on the psychological weight of the current bear run. Not to mention the presence of institutional investors who also have the power to short as they please as long as the headwinds persist.
Especially since doubt arises about one of the major players in the cryptocurrency industry, Microstrategy, which holds more than 129,000 bitcoins bought on credit. The company founded by Michael Saylor could therefore find itself in a bad position, if the price of BTC were to move significantly away from $ 21,000.
In this sense, the latest technical analyzes would suggest that Bitcoin’s bear run since its last ATH in November 2021 has not reached its terminal phase. What fuel the fear of seeing the king of cryptos break the support of $ 20,000, a former ATH of the bull run of 2017.
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Bitcoin in weekly units – A week of deja vu
With the exception of the week of May 30, thee Bitcoin has consistently closed lower in 11 of the past 12 weeks. Which is unfortunately yet another sad historical record since its existence. As the market context remains unchanged, it is difficult to see what could prevent it from continuing to sink to the bottom of the precipice.
The last two weekly bearish candles do not bode well. We observe this fact thanks to the breakout of the $30,000 support, then that of the old lows of the year, all in less than a fortnight. Which is enough to crack a nice fork of cryptocurrency investors. So that short sellers could have a blast due to BTC’s unfavorable price position against the Ichimoku curves.
Firstly, King of Cryptos Prices and Chikou Span Crunch Deep in Kumo (cloud). They are approaching the $20,000 support. On the other hand, the effective dynamics of Tenkan and Kijun, which are also below the cloud. The latter do not show the slightest sign of losing momentum on the downside.
In the event of considering the coup de grace below $20,000, Bitcoin would see most of its last bull run largely wiped out. As it remains a volatile asset until further notice, it could accommodate both downside and upside excesses. Especially if the major risks on the financial markets remain as they are for fear of seeing the central banks trapped in their monetary policy.
Bitcoin in daily units – A small technical bounce before $12,000?
If the session of Monday June 13 was fraught with consequences with new lows for the year, Bitcoin managed to hold slightly above the $20,000 support, not without difficulty. And despite prices below the cloud, the significant deviation from the Tenkan shows an excess on the downside that could be corrected through a technical rebound. This is all the more so as the most volatile curve of the Ichimoku is practically on the resistance of $25,000. This would at best offer around 25% upside potential from $20,000.
Nevertheless and as a reminder, a technical rebound will happen at one time or another. It is a mechanism that is part of the classic pattern of a bear market. Indeed, the crisis of confidence in cryptocurrencies since May 12 will not fade with the snap of a finger.
Insofar as the logic of the bear run is respected, the pure and simple break of the $20,000 support would lead us towards $12,000. This is the crucial level of the last bull run. We will then perhaps witness a phase of capitulation. It will give rise to cheap opportunities before the next halving.
As unfavorable technical signals pile up, Bitcoin’s bear run since its last ATH in November 2021 has shifted into high gear. In such a way that it discourages potential buyers. And rightly so, because the major risks in the financial markets are not going away.
With a head-and-shoulder (ETE) head-and-shoulder (ETE) and descending line far from being thwarted, cryptocurrency investors should make up their minds about the possibility of another bull run for now. Until now, BTC prices are successively breaking the supports without the slightest effort.
And contrary to the dominant thought, the bear run of the king of cryptos which occurs before our eyes, has nothing to do with the precedents. Not only institutional investors are present in this niche market. But even worse, the panic has not yet given way to capitulation. This is why I fear that the support at $20,000 is struggling to resist to return to bring us back to $12,000, a key level of the last Bitcoin bull run. Thus, we should expect a wave of bankruptcy from many players to lead to a healthy consolidation of the cryptocurrency industry.
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