Holding Back The Bears: Why Bitcoin Must Break $22,500
June 29 2022 - 1:00PM
NEWSBTC
Bitcoin continues to struggle to hold the $20,000 level even after
a recovery coming out of the weekend. This decrease in price has
pushed the market further into the bear market. It still trades at
very critical levels which will determine the movement for the next
couple of weeks. These two main points are the support that formed
at $20,000 and the 200-week moving average. Bitcoin Turning
Bearish? The price of bitcoin at the time of this writing is
ranging towards $20,000 with drawdown. Being so dangerously close
to this point is critical in the forecast for the price of bitcoin,
and this is despite the fact that bulls have already formed support
at $20,000. Related Reading | Outflows Rock Bitcoin As
Institutional Investors Pull The Plug, More Downside Coming?
Another critical technical level is the 200-week moving average
which the digital asset is currently trading below. Now, this is
the first time in history that the price of BTC has ever fallen
below the 200-day moving average, registering one of the most
bearish trends ever recorded in the market. As such, there is now
significant resistance mounting at the 200-week moving average
which lies at an average of $22,500. This makes $22,500 the point
to beat if the digital asset has any hopes of reverting to a bull
trend. However, resistance is building even below this point. This
was seen at $21,500 over the last couple of days as bitcoin had
failed to successfully beat this point. BTC price struggles to hold
$20,000 | Source: BTCUSD on TradingView.com Additionally, the
digital asset price falling below the 200-week moving average has
triggered more sell-offs in the market. These sell-offs are
apparent on centralized exchanges such as Coinbase which have
recorded large inflows in the last couple of days. Sentiment
Refuses To Budge The market sentiment surrounding bitcoin and other
cryptocurrencies has been impressively negative in recent times. It
has now spent the majority of the month of June in the extreme fear
territory as investors refuse to budge on their decisions to not
move more funds into the market. The same sentiment is resonating
through institutional investors who have been pulling out of the
digital market en masse. Even the decline in price to levels some
would consider a ‘discount’ has not done much to combat this
negative sentiment. Institutional investor outflows from bitcoin
for the previous week had come out to $453 million. Related Reading
| Ethereum Plugs 11-Week Bleed, why $1,500 May Be On The
Horizon Moreover, the interest in shorter-term positions in BTC is
gaining more ground. This is evident in the attention that the
ProShares Short Bitcoin has received in the last week. More than
$18 million had flowed into the ETF in the first week alone.
Bitcoin is currently trending at $20,000 at the time of this
writing. If continues on this trend, the next significant support
is existent at $16,500 which could be a shock to the market.
Featured image from Bitcoinist, chart from TradingView.com Follow
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