Bitcoin Approaches 2018 Like Drawdown, Why $20,000 Is A Crucial Level
Bitcoin has been moving sideways around its current levels with no
clear direction on lower timeframes. The cryptocurrency has
experienced its worst-selling pressure in years but has held firmly
around its 2017 all-time high. Related Reading | Crypto
Trading Volumes In India Sink Due To Heavy Taxation, What’s Ahead?
At the time of writing, Bitcoin trades at $20,140 with a 4% profit
in the last 24 hours. The general sentiment in the market has been
turning more positive, as NewsBTC reported yesterday, as the Crypto
Fear and Greed Index climbs back from Extreme Fear levels.
According to Senior Commodity Strategist Mike McGlone, Bitcoin and
the crypto market are near their 2018 drawdown levels. At that
time, the nascent asset class experienced a similar bearish trend
which pushed BTC’s price to a 75% loss from its ATH. At that time,
the $3,000 price point became a major bottom which saw a period of
accumulation extending for multiple years. In 2020, when global
markets were in turmoil due to the COVID-19 pandemic, BTC marked
the bottom once more when near $3,000. After that, the
cryptocurrency began a new ascend into price discovery. This time
macro-economic conditions are different, and Bitcoin could retest
its yearly low of around $17,000, but McGlone suggests it has
reached a point where long-term holders could profit in the second
half of 2022: (…) the Bloomberg Galaxy Crypto Index nearing a
similar drawdown as the 2018 bottom and Bitcoin’s discount to its
50- and 100-week moving averages similar to past foundations, we
see risk vs. reward tilting toward responsive investors in 2H.
Since its inception, BTC’s price has historically found a bottom
around previous all-time highs. McGlone claims there are conditions
for $20,000 to operate as this pivot support level in 2022 on the
back of a decline in “risk measures” against the traditional
market. Bitcoin at $20,000 may be looked back upon like $2 in 2011,
$200 in 2015 and $3,000 in 2018. Bitcoin and Ether risk measures
are falling vs. equities and the potential for US regulation
(Lummis-Gillibrand crypto plan) shows mainstream maturation.
Bitcoin Short Term Outlook Show Improvement? On lower timeframes,
Bitcoin has been able to stay above $20,000 despite the decline in
traditional markets and the strength of the U.S. dollar. The U.S.
currency is approaching a 20-year-old high as investors continue to
de-risk amid current macroeconomic conditions. Data from Material
Indicators (MI) records around $20 million in bid orders for BTC’s
price from $20,000 to $19,000. These levels should operate as
support in case of further downside as BTC whales continue to
accumulate. Related Reading | TA: Bitcoin Faces Another
Rejection, Can Bulls Save The Day Larger BTC investors have been
buying into the cryptocurrency’s price action over the past week.
Addresses with 100 to 100,000 BTC added 30,000 BTC over this
period. In the past week, addresses with 100 to 10,000 $BTC added
roughly 30,000 #BTC to their holdings while 40,000 #Bitcoin were
withdrawn from known #cryptocurrency exchange wallets.
pic.twitter.com/vRC7cJYvbZ — Ali Martinez (@ali_charts) July 4,
Historical Stock Chart
From Sep 2022 to Oct 2022
Historical Stock Chart
From Oct 2021 to Oct 2022