The king of cryptos in depression mode below $20,000? – What if next week were to lead to a Bitcoin (BTC) below a previous level? Many cryptocurrency investors do not expect to see this level again anytime soon. But that’s without counting on the psychological weight of the current bear run. The presence of institutional investors also having the power to shorten at will as long as the headwinds persist.
Especially since doubt arises about one of the major players in the cryptocurrency industry, Microstrategy, which holds more than 129,000 bitcoins bought on credit. The company founded by Michael Saylor could therefore be in bad shape if the price of BTC moves away from $21,000.
In this sense, the latest technical analyzes would suggest that Bitcoin’s bear run since its last ATH in November 2021 has not reached its terminal phase. What fuel the fear of seeing the king of cryptos break the support of $ 20,000, a former ATH of the bull run of 2017.
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Bitcoin in Weekly Units – A Week of Deja Vu
With the exception of the week of May 30, thee Bitcoin has consistently closed lower for 11 of the past 12 weeks. Which is unfortunately yet another sad historical record since its existence. As the market context remains limited, we do not see what could prevent it from continuing its stalemate to the bottom of the precipice.
The last two weekly bearish candles would not bode well. We observe this fact thanks to the breakout of the support of $30,000, then that of the future former lows of the year, the $25,000. All in less than a fortnight. Which is enough to crack a nice fork of cryptocurrency investors. So that short sellers could have a blast due to BTC’s suppressed price position against the Ichimoku curves.
Firstly, King of Cryptos Prices and Chikou Span Crunch Deep in Kumo (cloud). They is approaching the $20,000 support. On the other hand, the effective dynamics of Tenkan and Kijun, which also occur below the cloud. The latter do not deplore any signs of losing momentum on the downside.
In savings to consider the knockout under $20,000, Bitcoin would see most of its last bull run largely wiped out. As it remains a volatile asset until further notice, it could accommodate both downside and upside excesses. Especially if the major risks on the financial markets remain as they are for fear of seeing the central banks trap in their monetary policy.
Bitcoin in daily units – A small technical bounce before $12,000?
If the session of Monday June 13 was fraught with consequences with new lows for the year, Bitcoin managed to hold slightly above the $20,000 support, not without difficulty. And despite prices below the cloud, the significant deviation from the Tenkan shows an excess on the downside that could be corrected through a technical rebound. Especially since the most volatile curve of the Ichimoku is also on the resistance of $ 25,000. This would at best offer around 25% upside potential from $20,000.
Nevertheless and as a reminder, a technical rebound will happen at one time or another. It is a mechanism that is part of the classic pattern of a bear market. Indeed, the crisis of confidence in cryptocurrencies since May 12 will not fade with the snap of a finger.
Insofar as the logic of the bear run is respected, the pure and simple break of the $20,000 support would lead us towards $12,000. This is the crucial level of the last bull run. We may then be witnessing the phase of capitulation. It will give rise to cheap opportunities before the next halving.
As unfavorable technical signals unfold, Bitcoin’s bear run since its last ATH in November 2021 has shifted into high gear. In such a way that it discourages potential buyers. And rightly so, because the major risks in the financial markets are not abating.
With a head-and-shoulder (ETE) head-and-shoulder (ETE) and descending line far from being thwarted, cryptocurrency investors should make up their minds about the possibility of another bull run for now. So far, BTC prices are successively breaking supports like butter.
And contrary to the dominant thought, the bear run of the king of cryptos which occurs before our eyes, has nothing to do with the precedents. Not only institutional investors are present in this niche market. But even worse, the panic has not yet opened up to capitulation. This is why I fear that the support at $20,000 is struggling to resist to return to the $12,000, a key level of the last bull run of Bitcoin. Thus, we will have to expect a wave of bankruptcy from a good number of players to lead to a healthy consolidation of the cryptocurrency industry.
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