The price of the pioneering cryptocurrency loses the USD 20,000 support where it was for nearly a week. The rejection of a Bitcoin ETF by the US SEC caused the value of BTC to fall to USD 18,980.
The price of Bitcoin (BTC) recently fell back to around USD 18,000, the low it first tested in over a year, on June 18th. It had rebounded from that level, staying mostly above USD 20,000, but it reached that figure thirteen days later.
That drop in the price of the pioneering cryptocurrency reinforces the bullish trend that analysts had forecasted. Bitcoin had already lost the support at USD 20,000 the day before, reaching the USD 19,000 line for the first time in seven days. It consolidates the downward force by stepping on the USD 18,000 range, but it sometimes rises.
Analyst Tom DeMark had stated Bitcoin was moving in a critical margin that would define its bullish or bearish trend. Before collapsing on June 29th, it traded between USD 20,000 and USD 22,000, reaching increasingly high lows for six days.
That led him to estimate that there was evident strength in the demand that was taking its price to higher levels. However, it did not seem powerful enough to break above the resistance at USD 22,000. He thought that the buying level would fall and the supply/selling force would increase if it did not overcome that resistance.
Due to that situation, its price has reached lower figures, like those observed in the market. DeMark had predicted the same for Ether (ETH), which could not exceed the USD 1,300 barrier and has dropped to USD 1,000.
The Bitcoin and Ether Collapse Leads Investors to Unrealized Losses
Those investing in cryptocurrencies when their prices were higher are suffering unrealized losses. For example, MicroStrategy bought USD 10 million worth of Bitcoin on June 29th at USD 20,817.
The cryptocurrency collapse occurred the same day the SEC rejected a Bitcoin spot exchange-traded fund (ETF). It might have been the first of its kind approved by the government agency. Its president, Gary Gensler, had called BTC a commodity some days before.
Like in the past, the rejection of the SEC was forceful, probably causing the drop of Bitcoin and Ether. Likewise, the discouraging news of the macroeconomic context has affected cryptocurrencies and led the markets to a bearish trend.
BTC is trading at around USD 18.96 and has accumulated a 5.6% loss over the last 24 hours. While its daily trading volume is above USD 20.37 billion, its market capitalization is about USD 364.62 billion, according to CoinGecko.
The drop in the price of Bitcoin back to around USD 18,000 has caused fear among investors. For that reason, many have decided to sell their holdings at a loss and even leave the market. However, others believe that the cryptocurrency will rebound into the bullish trend as Michael Saylor does.
By Alexander Salazar
