Yesterday was a historic day for the price of Bitcoin (BTC)† For the first time since December of 2020, the price of bitcoin was below $20,000. In fact, it was the first time ever that a previous all time high if support was lost. However, after dropping to $17,600, bitcoin price started a cautious recovery. At the moment, the price is even hitting $20,000 again.
Bitcoin price recovers, but the danger has not yet passed
Although it is of course not annoying to see that the bitcoin price is still showing signs of life, that does not mean that the misery in the market is now over. The price is still below $20,000 and before this point is effectively broken we cannot really speak of a trend reversal or reversal†
The zone around $20,000 has long been seen as a strong zone of supportbut because it was lost yesterday, that same zone of support changed in resistance.
Previous #Bitcoin support (at $20k) now acting as resistance
— Josh (@CryptoWorldJosh) June 19, 2022Advertisement
So it is simply impossible at this point to state with any degree of certainty that we saw the bottom yesterday. Yes, it is a beautiful one bouncebut if the course If we can’t get back above $20,000 in the near term, the most likely scenario is still a further decline. Still, there is of course a chance that the $17,600 was indeed the bottom. However, as usual, we will only find out afterwards.
Where is the bottom for BTC?
If we reject at the $20,000 level at the bottom, the price of bitcoin could just take a decent step further down. While it’s hard to say where the price could hang in that case, there are still a number of zones of potential support to point out.
The area around $14,000, in particular, could potentially halt a further deep decline. However, that would mean that the bitcoin price should drop by another 30% from here. However, it is a scenario that investors should consider.
What does the Bitcoin community think?
We also recently asked the Crypto Insiders Community where they thought the bitcoin bottom would form. The sentiment among Crypto Insiders readers is not exactly positive, but sober. The vast majority expect the bottom for bitcoin to be a lot lower than the current price.
Every market is correcting.
What matters is what happens next.Advertisement
What asset do you want to be holding when things finally bottom?
The stock market doubled after March 2020. #Bitcoin went up about 17x.
— The Wolf Of All Streets (@scottmelker) June 19, 2022
💥JUST IN: 50% or #Bitcoin supply is at a loss.
— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) June 19, 2022Advertisement