Bitcoin (BTC) has dropped for six consecutive days in a row. It’s currently declined by 54% as of this writing. The king of cryptocurrency plunged by 4.3% and traded under $22,000 on Monday. It has increased by 14% last week yet ended with a retracement.
On Sunday, BTC prices have improved a bit by 14%. The slight spike in price marks the traders’ massive sell-off happening at the $23,000 range or BTC being sent to exchanges.
BTC volume or flow towards exchanges has increased in the past 24 hours. There was a marked increase in terms of net deposits implying the large volume of BTC being moved to exchanges that can help them exit their current BTC position. Buying window is seen from July 14.
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BTC Prices Show Resistance At $23,000
More so, it is expected that BTC prices will continue to be consistent showing some support at the $20,500 range and resistance seen at around $23K.
We should be paying close attention to GDP growth statistics on Thursday as analysts estimated a growth of roughly 0.5%. Meanwhile, a GDP that hovers below 0.5% will give away a bearish movement for both the digital and traditional markets. A negative sentiment is predictive of the possibility that the economy will move into recession.
If in case the price range doesn’t hold up at $22,000, Bitcoin may fall in a heap at $19,000. It’s apparent that BTC is attempting to keep with the tremendous selling pressure initiated by the bears. Bitcoin has had massive gains since June 18 wherein the digital gold jumped from $20,700 to as much as $23,800 in just two days.
BTC total market cap at $401 billion on the daily chart | Source: TradingView.com
Will Bitcoin Price Bottom Out?
Now, it’s dangerously leaning towards $19,000. But, can Bitcoin really bounce swiftly to this uncomfortable figure? With the large inflows present in the market, this dangerous bounce to $19,000 is a possibility and can pose a huge problem in the market.
There are different factors supporting the possibility that the recent towards $23,000 was in fact a bear pit as BTC was able to breech the resistance and then was able to revert back, leaving the bulls suffering incremental losses.
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BTC is said to be in the process of bottoming out following its gains of 25% and then cascading down to $17,500 on June 18.
Bitcoin’s minimal loss suggests that BTC Bulls are cooking up their next move. BTC is seen to be oversold due to its weak RSI in June 13. This seems like a familiar trend when BTC’s RSI also dropped to 20 in March 9 and consequently rallied to $69,000 in November 2021.
Featured image from Coinpedia, chart from TradingView.com
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