Bitcoin (BTC) underwent a dramatic change in sentiment on June 22, as multi-day highs gave way to a fresh plunge below $20,000.

Hourly candlestick chart BTC/USD (Bitstamp). Source: Trading View

BTC May See Accumulation Below Key Trendline

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Data from Cryptooshala Markets Pro and trade view showed that BTC/USD has abruptly stopped its last rise and hit a low of $19,947 on Bitstamp.

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The largest cryptocurrency topped $21,700 the day before, the best performance since June 16, but momentum waned during Wall Street trading.

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Popular trader and analyst Rekt Capital feared that BTC/USD would not be able to recover its 200-week moving average (MA).

A classic support line in previous bear markets, Bitcoin has previously held the 200-week moving average as support with wicks below it, characterizing the bottom of the macroeconomic price.

“If BTC fails to rebuild the 200-week moving average as support… Then one of the scenarios of what could happen would include a decline to new lows before forming an accumulation range below the 200-week moving average for the first time,” he warned.

At the time of writing, the 200-week MA is $22,420.

BTC/USD (Bitstamp) weekly candlestick chart with 200-week MA. Source: Trading View

Fellow trader Credible Crypto was more optimistic in the short term, telling his Twitter followers that he does not foresee a significant drop in the spot price.

By zooming out, Crypto Tony also highlighted the “demand zone” where BTC/USD was now active.

“On the macro, we can see a few things here. We have clearly separated from the distribution range. Now we are testing the first demand zone from this range. The reaction is expected, but not the bottom yet, in my opinion,” he said. tweeted.

“Wick up to $17,000-$15,000 on cards.”

Whales hope to reduce exposure to BTC

In the meantime, for the largest BTC hodlers, signs of change were already visible in the on-chain data.

This is not Hodling! Over 50% of Bitcoin addresses are still in profit

According to network analytics company glass knotOn June 20 and 21, Bitcoin whales listed over 50,000 BTC on exchanges. This followed an influx of 58,000 BTC in one day on June 13th.

Thus, the total inflow of funds from whale wallets remained elevated throughout the day, although not in line with the levels seen during some of the previous sell-offs.

For example, on May 9, the same group sent over 80,000 BTC to exchange accounts, the highest since March 2020.

Bitcoin whale exchange deposit chart. Source: glassnode

As Cryptooshala reported earlier this week, whale buyers have meanwhile created a potential major support level just above $19,000.

The views and opinions expressed here are solely those of the author and do not necessarily reflect those of Every investment and trading step involves risk, you should do your own research when making a decision.