Bitcoins Decline Continues as Bearish Sentiment Grows
Following a series of sideways movements, the bears in the Bitcoin (
BTC
) market seem to be gaining strength over the original cryptocurrency. At the current moment,
Bitcoin
has dropped below the $67,000
support
level in the last day, falling to as low as $65,000. All eyes are now on the next price action, with
CryptoCon
, a Bitcoin analyst, suggesting in a recent post on June 14 that traders should brace for further corrections in the days ahead.
As per
CryptoCon’s
research, a crucial support level that could significantly impact market direction has materialized at the 20-week exponential
moving average
(EMA), which is currently at $61,603. The analyst emphasized that the situation is now a waiting game to observe the next move of Bitcoin.
Historical data on the impact of the 20-week EMA reveals its reliability as a support level across different market cycles. In the early
bull run
of 2012-2013, Bitcoin experienced rapid growth, using the 20-week EMA as a springboard for higher prices. A notable retesting of the EMA in April 2013 preceded another considerable price surge.
Conversely, during bear market phases such as those in 2014-2015 and 2018-2019, Bitcoin breached below the 20-week EMA, indicating prolonged downturns. For instance, at the end of 2018, Bitcoin’s decline below the EMA led to an extended bearish period until it regained support in early 2019.
In contrast, the sudden market crash triggered by the COVID-19 pandemic in 2020 briefly pushed Bitcoin below the EMA.
Various theories have been put forth to explain the sharp decline in Bitcoin, dropping to as low as $65,000. For instance,
cryptocurrency
analyst Ali Martinez suggested in a recent post on June 15 that the recent actions of miners may have contributed to the drop. Martinez noted that miners sold over 1,200 Bitcoins, valued at more than $79.20 million, adding to the downward pressure.
On the other hand,
crypto trading
expert Michaël van de Poppe
highlighted
that Bitcoin and the broader crypto market have been impacted by a mix of hawkish signals from the Federal Reserve, a strong dollar, and
regulatory
uncertainties.
Despite the ongoing price consolidation, the overall sentiment remains cautious yet hopeful. This is backed by data from Martinez indicating that investors are buying during the dip. Specifically, on the HTX
crypto exchange
, the Bitcoin Taker Buy Sell Ratio surged to 545, indicating bullish sentiment towards the leading cryptocurrency.
Meanwhile, Bitcoin is working to maintain its price above $66,000 and target $67,000. At the current moment, Bitcoin is trading at $66,210, showing a 24-hour correction of over 1%. On the weekly chart, it remains in the red with a nearly 5% loss.
Disclaimer:
The content on this site should not be regarded as investment advice. Investing carries risk. When investing, you are putting your capital at stake.