As we mentioned in our previous article on Bitcoin price dynamics in the market, the first cryptocurrency could be set for another drop to $19,000 if the price range it previously stayed in does not hold up. Unfortunately, digital gold is struggling to keep up with the bearish selling pressure. security.
Will Clemente shared the chart he previously mentioned in his June 24 post. The analyst highlighted a price range that is a turning point for BTC. If the cryptocurrency falls below the range for any reason, we will most likely see a fall back to the $19,000 zone.
— Will Clemente (@WCclementeIII) July 25, 2022
Unfortunately, Bitcoin has lost most of the gains we have seen since June 18, when the price of the first cryptocurrency suddenly jumped from $20,700 to $23,800 within two days.
Why is dropping to $19,000 problematic?
The main reason so many traders and analysts are hoping that bitcoin will not fall below the $22,000 threshold again is because of the abundant influx into the market, which makes a future price spike a real concern for the market.
There are many factors that hint that the current rise to $23,000 was a bear trap, as Bitcoin easily broke the trend line resistance and then returned to it almost immediately, leaving the bulls who entered positions above the local resistance levels with big losses.
Institutional inflows into the cryptocurrency market are still at a relatively low level, which is another factor that speaks against the success of Bitcoin in the market for the foreseeable future, especially if the price of the first cryptocurrency reaches the level of mid-July.
Credit : u.today