Bitcoin (BTC) was able to recover nicely last night, but the times remain bleak in crypto land. It remains to be seen whether bitcoin can make a trend reversal yet, especially in these dire macro conditions, where fears are extremely high. People are therefore very divided whether bitcoin has finally reached a bottom or whether it will fall even deeper in the coming period.
Yesterday, stock markets like S&P 500 and Nasdaq, with which bitcoin still has a very high correlation, were closed. They will reopen in a few hours after a long weekend and that could add more volatility to the crypto market.
Bitcoin Fear and Greed Index is 6 — Extreme Fear
Current price: $20,468 pic.twitter.com/RIHleuA0Z2— Bitcoin Fear and Greed Index (@BitcoinFear) June 18, 2022
Bitcoin price rises by 5.5%
The bitcoin price recently fell below the 200-week moving average for the fourth time in its history. Last weekend, bitcoin even dipped all the way to $17,760, its lowest price since late November 2020.
Bitcoin then made a rebound, but the price initially struggled to recapture $20,000. Bitcoin succeeded yesterday, when the price after a dip, held above USD 20,000 and rose further. Bitcoin encountered some resistance around USD 20,500 last night but broke through early this morning.
The BTC price currently stands at $21,200 on Binance and $20,100 on Bitvavo. This means that the BTC price is 5.5% in the plus, but still 30% in the minus compared to the $30,000 two weeks ago.
Let’s see what happens with #BTC†
There have been several price rejections at the 21k level. In the first attempts the buying activity has decreased. At this time it has increased again but with the absoption of buyers. This activity is used to exhaust aggressive buyers… pic.twitter.com/XmiwdGxIOO— M_Ernest_💯₿ (@M_Ernest_) June 20, 2022
Federal Reserve QT Policy
Financial markets have been hit hard after the Federal Reserve, the US central bank, decided to raise interest rates to curb inflation. In the meantime, the Fed may already appear to be backing down somewhat, perhaps due to the severe impact on the markets. St. Louis Fed President James Bullard reported last night that the Fed may not need to go that far with its quantitative tightening (QT) policy as may have been thought. That could provide some relief.
One more rate hike and we’re at or exceeding the historic Fed capitulation trend as the ever increasing debt construct brings about a recession & the Fed has to intervene by cutting rates. pic.twitter.com/luwa9JslHJ
— Sven Henrich (@NorthmanTrader) June 20, 2022
Bitcoin (death) searches to record high
The extreme volatility and price decline ensure that bitcoin is attracting attention again. Search volume on Google for “bitcoin” is at its highest since May 8 last year, analytics firm IntoTheBlock reports.
14 month high.
Google searches for “#bitcoinhit the highest weekly number since May 8th of last year.
The trend searches over the span of 12 months with a max score of 100.
chart: https://t.co/wgK8faSclq pic.twitter.com/hZtULSgdYf
— IntoTheBlock (@intotheblock) June 20, 2022
Meanwhile, the number of searches for “Bitcoin dead” even has a new all time high (ATH), CoinGecko reports. It is a clear sign of the extreme fear in the market.
In case you didn’t know, “Bitcoin dead” searches reached a new all-time-high 😂 pic.twitter.com/GUV1IbL07b
— CoinGecko (@coingecko) June 21, 2022
Huge bitcoin accumulation
Despite this, several investors are already accumulating a lot of BTC. Analyst Jan Wüstenfeld reports this based on the Bitcoin Accumulation Trend Score of research firm Glassnode.
the #Bitcoin Accumulation Trend Score continues to show values of one or close to one on the current price correction, signifying that big participants (or a big part of the network) are accumulating. $BTC pic.twitter.com/iu3F00OwSA
— Jan Wustenfeld (@JanWues) June 20, 2022
Analyst Ali Martinez reports that as much as 108,200 BTC, worth about $2.16 billion, has been withdrawn from cryptocurrency exchanges since June 14.
#Bitcoin † More than 108,200 $BTC have been withdrawn from known cryptocurrency exchange wallets since June 14, worth roughly $2.16 billion. pic.twitter.com/x3bJmMVFwK
— Ali Martinez (@ali_charts) June 21, 2022
Whalemap reports that 100,000 BTC accumulated on June 18 alone, forming a new “whale level” around the price of $19,174. This price could therefore serve as strong support in the short term.
New whale level has formed over the weekend’s dump.
The accumulation is quite large, >100k BTC, and happened on the 18th of June.
Prior to that, a large portion of Dec 2018 Bitcoins have moved from the previous 4k bottom… Could be OTC
Looks like a great short term support pic.twitter.com/rJbV26ZifG
— whalemap (@whale_map) June 20, 2022
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the #Bitcoin LGC channel could also be called the goldilocks zone – not too bullish at the top, not too bearish at the bottom.🙂 pic.twitter.com/aa8p6CnxOU
— dave the wave🌊🐫 (@davthewave) June 21, 2022
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