Bitcoin price is dumping some more as bulls push for lower prices
- Bitcoin price is back in the buy zone despite the recent decline to $19,620.
- BTC price could extend losses to record June lows if support at $19,600 crumbles.
- Bitcoin price shows reversal moving above $20,000, but whales must continue to rally.
Bitcoin price continued last week’s losing streak amid fears of further losses. Investors are warning of another crypto crash with the upcoming big event – The Ethereum Merger. The market is conflicted, with some participants believing so Merge have already been taken into account in the calculation. In contrast, others predict a scenario of selling the news at huge losses.
Meanwhile, Bitcoin price exchanging hands at approximately $19,725 during Asian trading on Monday. Support at $19,600 held, preventing further action to the June low around $18,000.
read more: JUST IN: Ethereum Passes 1.7 Billion Transactions, What’s Next for ETH?
Key fundamentals supporting a possible price recovery for Bitcoin
High volume investors, otherwise known as whales, continue to sink money into the largest cryptocurrency – despite the recent downward trend. According to Santiment’s Metrics for supply distribution in the chainaddresses that hold between 10,000 and 100,000 BTC stand at 92, up from 79 at the beginning of March.
A turnaround is expected to take shape in the coming days—perhaps weeks, as long as the whales continue to fill their pouches. Ideally, the tail force behind the Bitcoin price rises with increasing demand and is usually a bullish signal.
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Bitcoin supply distribution metrics
The market value realized value (MVRV) reveals that the bellwether cryptocurrency is back in a buy zone. As observed in the chart below, an MVRV reading of -7.78% suggests that Bitcoin price is significantly underestimated. Bulls can push for much lower prices, after which they will push for the ultimate swing—not just above $20,000, but strong enough to start a bull run.
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Bitcoin MVRV on-chain metric
Bitcoin price may soon be on the road to recovery, but first support at $19,600 must hold. If this congestion of buyers weakens, investors should begin to acclimatize to declines extending below $19,000, especially now that June lows are in sight.
On the brighter side is Stochastic Oscillator stretches for a bullish divergence as Bitcoin price stabilizes its price action for a possible run above $20,000. This index needs to validate a break above a major descending trendline, as shown below, for Bitcoin price to make a lasting comeback.
BTC/USD four-hour chart
It is worth zeroing in on possible obstacles that the Bitcoin price may encounter in its quest to climb above $20,000, such as the solid seller traffic areas of $20,400, $21,800 and $20,000. Traders who may not want to hold on for the ultimate push into a bull run may consider exiting their positions at the aforementioned levels. Still, the most bullish have the choice of holding at $26,000 and $28,000, respectively.
