Bitcoin (BTC) has been falling for six days in a row. It is currently down 54% at the time of this writing. The cryptocurrency king fell 4.3% and traded below $22,000 on Monday. Last week, it rose by 14%, but ended with a pullback.
On Sunday, BTC prices improved slightly by 14%. A small spike in price marks a massive sell-off by traders in the $23,000 range or sending BTC to exchanges.
The volume or flow of BTC to exchanges has increased in the last 24 hours. There has been a noticeable increase in net deposits, which means a lot of BTC is moving to exchanges, which could help them get out of their current BTC position. The purchase window is visible from July 14th.
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BTC prices show resistance at $23,000
Moreover, BTC prices are expected to remain stable, showing some support in the $20,500 range and resistance around $23k.
We should pay close attention to Thursday’s GDP growth statistics, as analysts estimated growth at around 0.5%. Meanwhile, a GDP hovering below 0.5% would spell bearishness in both digital and traditional markets. Negative sentiment predicts the possibility that the economy will enter a recession.
If in case the price range does not hold at $22,000, Bitcoin could plummet to $19,000. It is obvious that BTC is trying to cope with the huge selling pressure initiated by the bears. Bitcoin has made huge gains since June 18, when digital gold jumped from $20,700 to $23,800 in just two days.
BTC total market cap at $401 billion on the daily chart | Source: TradingView.com
Will the price of bitcoin hit the bottom?
It is now dangerously leaning towards $19,000. But can Bitcoin really quickly return to this uncomfortable figure? With a large influx in the market, this dangerous bounce to $19,000 is entirely possible and could create a huge problem for the market.
There are various factors supporting the possibility that the recent drop to $23,000 was actually a bearish pit as BTC was able to overcome resistance and then was able to bounce back causing the bulls to take further losses.
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BTC is said to be in the process of bottoming out after a 25% rise before sliding back to $17,500 on June 18.
Bitcoin’s minimal losses suggest that the BTC Bulls are preparing their next move. BTC oversold due to weak RSI on June 13th. This seems to be a familiar trend as the RSI of BTC also fell to 20 on March 9 and consequently rose to $69,000 in November 2021.
Featured image from Coinpedia, chart from TradingView.com
Credit : www.newsbtc.com