The current decline of Bitcoin's price
Since reaching its all-time high of $69,000 in November 2021, the price of Bitcoin has been declining. The current decline reached a low of $17,622 in
Since reaching an all-time high of $69,000 in November 2021, the price of Bitcoin has been falling. The current drop led to a low of $17,622 in June. A long lower wick was produced by the subsequent bounce.
The bounce confirmed the $19,200 horizontal area’s worth of support. It had previously served as resistance during the all-time high of 2017 and then again in January 2021. The region is now expected to offer support.
Bitcoin, which has been trading below $20k since the beginning of 2019, has continued to fail to break above that level.
Since breaking through that key point last Tuesday, the largest cryptocurrency has not been able to surpass $20,000. Bitcoin has stayed above $18,000 (the lowest it reached during the trough of a selloff in mid-June), even if it is still trading at less than one-third of its all-time high, which was above $69,000 in November 2021.
Bulls tried to drive the currency back up the chart and towards $22,000, but a strong sell-off brought it down to $19,000 instead. The important support level for the coin was $17,000; if bears continued their attacks, BTC could move higher in subsequent trading sessions. The market capitalization of all cryptocurrencies is currently $914 billion, up 0.3% over yesterday's figure.
BTC's price on the four-hour chart was $19,000. Prior to an attempt to recover on the chart a few weeks back, the BTC/USD pair traded at that level. Resistance for BTC first appeared at $22,000 and later at $20,000.
The $22,000 level has been a significant hurdle for BTC, which has had difficulty trading above it for a long time.
If the present price trend for BTC continues, $17,000 will be the next soon.
The trading volume of BTC/USD dropped sharply, and the bar on the chart turned red, indicating bearishness. Selling pressure has been prevalent in the market.
Central banks have not eased monetary policy, which means that the financial conditions in the equity markets are still loose. As a result, BTCUSD is still below its 200-week moving average after failing to break above it last week.
A quirk of history, the RSI on the weekly charts is still oversold. This does not mean that it's a good time for the bulls to enter, though. In theory, if market conditions continue to improve from their extremes, this would be a sign of a buy signal.
In the second quarter of 2022, bitcoin had its worst performance in eleven years. Investor Michael Bury, who correctly predicted the 2007 mortgage crisis, acknowledges that BTC and stocks are still in the middle of a bear market cycle.
Changpeng Zhao, CEO of cryptocurrency exchange Binance, believes that the current downturn in the crypto market is a good opportunity to invest in bitcoin. He says that investors who can hold on through the bear market will see their holdings appreciate during the following bull phase.
Institutional investor demand, international restrictions, and the collapse of critical support levels are additional factors that make it difficult to predict whether or not a cryptocurrency will skyrocket.
Whales produce a lot of waste
Data from Glassnode, a blockchain analytics firm, shows that the number of Bitcoin addresses with losses rose to 18.8 million on July 3, 2022. This is the highest weekly average in recent years and indicates that this week's market crash has been particularly bad for Bitcoin holders.
CryptoQuant analysts say that the Whale Ratio, which shows how much big wallet holders are selling, predicts that bitcoin's price will shortly bottom out. The top 10 inflows of bitcoin to exchanges are divided by the total daily inflows to arrive at the whale ratio indicator. High values of the measure reflect changes in price.
The analyst noted that whales are quickly transferring their Bitcoin holdings to cryptocurrency exchanges and suffering significant losses.