Passed tests – The price of Bitcoin (BTC) recorded significant losses of around 33% last week. This haemorrhage in the markets could, however, be lifesaving for the price of Bitcoin and the crypto markets in general.
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Bitcoin Price Back to $20,000: Final Bottom Under Construction?
Bitcoin price fell up to $17,610 on Bitfinex during the weekend of June 18, 2022. However, it managed to close the week above $20,000. Bitcoin price rises at $20,291 today, June 20, 2022, at the time of this writing. Markets are currently entitled to one doji on a daily basis.
How should markets interpret this weekend cryptocurrency rout?
Whalemap analysts returned to this fall below $20,000, showing in a graph, an accumulation of 133,400 BTC by the whales, on June 18, 2022. These whales then constituted new strong support at $19,174.
This drop below $20,000 would therefore be beneficial to the bulls from this angle. And thanks to this major new support, the $17,610 could be the floor price of this bearish phase.
Whalemap analysts are not the only ones trying to present the advantages of the liquidations of recent days. Trader Rekt Capital also commented on last week’s selling levels.
Bitcoin’s sales volume was then “very close” to that of March 2020. This volume even made a foray below the 200-week simple moving average. This major support, however, held despite pressure from the bears.
The markets could then estimate that the price of Bitcoin has reached a price floor, in based on the passed test of this average.
Crypto Bear Markets: Is the Worst Behind Traders and Investors?
Trader Michaël van de Poppe spoke of another test of essential support for all crypto markets. The total cryptocurrency market capitalization not only retested the all-time high from 2017. It also held above the 200-week simple moving average.
The graph above shows that such an event precedes either:
- a slight bullish rally ahead of another test of the 200 week simple moving average;
- a strong bullish recovery that brings this market capitalization to a new all-time high.
Will the crypto markets then to be able to erase the losses soon of the past few weeks? In the past, crypto markets have taken more than a year between two retests or to reach a new all-time high after a test of this 200-week moving average.
Has the capitulation preceding a bullish recovery finally taken place? Although it is too early to rejoice, further signs of a strengthening of $20,000 would reassure the markets enough.
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