The Bitcoin price goes below $ 20K when whales send 50K BTC to stock exchanges
Bitcoin (BTC) saw a dramatic change in mood on June 22, when several-day highs gave way to a fresh dive below $ 20,000.
BTC can see accumulation below the key trend line
Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD abruptly stopped its recent gains and reached the lowest level of $ 19,947 on Bitstamp.
The largest cryptocurrency had passed $ 21,700 the day before, the best performance since June 16, but momentum slowed during Wall Street trading.
For the popular trader and analyst Rekt Capital, there was a danger that BTC / USD could not regain its 200-week moving average (MA).
As a classic guideline in previous bear markets, Bitcoin had previously retained the 200-week MA as support with weeks below that which characterized macro price bases.
“If BTC is unable to recover the 200-week MA in support … then one of the scenarios for what could happen will be the downside to new lows before the formation of an accumulation area for the first time during the 200-week MA,” he said. warning.
The 200-week MA stood at $ 22,420 at the time of writing.
Co-trader Credible Crypto was more optimistic about the short-term perspective, and told Twitter followers that he did not anticipate that the spot price would go much lower.
About to return to our weekly demand level after we dropped it in recent days. Do not expect new local lows here – looking for the GREEN region to hold and for us to add another local high in the RED resistance region between 22-24k. $ BTC pic.twitter.com/F79eokL5W6
– CrediBULL Crypto (@CredibleCrypto) June 22, 2022
By zooming out, Crypto Tony highlighted in the same way the “demand zone” that BTC / USD is now trading in.
“On the macro we can see a few things here. We clearly broke from a distribution area. We are now testing the first demand zone from this series. A reaction is expected, but not a bottom yet in my opinion,” he twitret:
“One week down to $ 17k – $ 15k on the cards.”
Whales appear to reduce BTC exposure
For the largest BTC holders, signs of change were already visible in chain data.
Related: It’s not hodling! Over 50% of Bitcoin addresses are still in profit
According to research firm Glassnode, on June 20 and 21, Bitcoin whales deposited over 50,000 BTC into stock exchanges. This followed 58,000 BTC in inflows in a single day on 13 June.
The total supply from whale wallets thus remained high on an intraday basis, while they still did not correspond to the levels seen during some previous sales.
On May 9, for example, the same group sent over 80,000 BTC to switch accounts, mostly since March 2020.
As Cointelegraph reported earlier this week, whale buyers meanwhile created a potentially large level of support just over $ 19,000.
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