BTC price briefly dipped below $20,000 and traders are warning that this important support level could end up unraveling after enduring a growing number of pullbacks.
Cryptocurrency bull traders who expected the market to be on a bullish path received a dose of reality on June 29, as the price of Bitcoin (BTC) fell back below $20,000 during the day.
Data from Cointelegraph Markets Pro and TradingView shows that the major cryptocurrency came under pressure in the early hours of trading on June 29, with bears managing to sink BTC to a daily low of $19,857 before the price broke back above the $20,000 mark.
Here is a brief summary of what, according to various analysts, lies ahead for Bitcoin as it struggles to gain momentum and break out of the current price range.
A Hectic Market is on the Way
A word of warning for traders looking to enter the market at these levels was offered by analyst and pseudonymous Twitter user IncomeSharks, who posted a chart showing a possible path BTC could take in the coming months.
The analyst said that, “More people end up losing money in the turbulent zones than in the big dips. I’m bullish in the medium term for many reasons. This summer is all about swing trading and accumulation. I’ll avoid the risks/sell mostly late Nov/Dec.”
The possibility of a stronger pullback was also flagged by Twitter user Altcoin Sherpa, who posted a chart citing the importance of the $20,000 level.
The trader stated that, “Around $20,000 is going to be a pretty big area on the shorter time frames; we lose that area and see a move to the lows of the range around $17,000 again in my opinion. If this area is bottom line, I expect to see the $17,000-18,000 again to be honest.”
Price May Go Back to USD 16,400
According to Rekt Capital, the recent price action is a reflection of other bear markets and could provide some clues as to where the bottom will be.
During the week of June 20, Bitcoin saw buying volume similar to what it experienced during the bottom of the 2018 bear market, near the 200-week MA.
The analyst said that, “During the formation of the 2018 bottom, however, that buying volume preceded an extra -20% downside. If BTC were to drop -20% sooner, the price would hit ~$16,400.”
Consolidation Leads to Accumulation
A more positive outlook was offered by Twitter user Miles J Creative, who posted a chart supporting the thesis that “a bullish phase is coming”.
The analyst said that, “In Bitcoin’s history it has only had the current accumulation structure when exiting, not entering, bear markets. Maybe this time it will be different, but the accumulation is saying that a bull phase is coming.”
The total cryptocurrency market capitalization currently stands at $897 billion and the dominance ratio of Bitcoin is 42.7%.
By Audy Castaneda
