Bitcoin (BTC) attempted to reclaim $20,000 as support on June 19 as bulls faced a weekly red candle at $7,000.
BTC/USD 1-hour candlestick chart (Bitstamp) Source: TradingView
$16,000 could be the next move
BTC/USD rose from a low of $17,592 on Bitstamp before a firm rejection at $20,000, according to data from Cointelegraph Markets Pro and TradingView.
The illiquid trading environment capped a grim weekend for holders as bitcoin fell to its lowest level since November 2020.
While recouping some losses, a sense of déjà vu permeated the market that day. $20,000 returned as resistance, which formed Bitcoin's three-year all-time high from December 2017 to December 2020.
This is also the first time that BTC/USD has fallen below the all-time high of the previous halving cycle.
However, despite the panic among some, seasoned market participants still have a rough understanding of recent price action, which remains in line with historical bear market patterns.
Market commentator Holger Zschaepitz admitted: “In the long run: the current 74% Bitcoin crash is not uncommon,”
“Historically, there have been 4 crashes in which the major cryptocurrency fell more than 80% from peak to trough.”
In terms of what might happen down the road, the focus is on $17,000, a potential short-term target. As noted by the popular Twitter account Credible Crypto, a short squeeze higher is not on the table.
Meanwhile, trader and analyst Rekt Capital added that Bitcoin’s 200-week moving average (MA), a key support line for the bear market, is still in play as before.
Sellers dump Bitcoin at record losses
In dollar terms, though, this week's "red candle" of around $7,000 would be the largest in Bitcoin's history.
BTC/USD monthly return chart Source: Coinglass
The data from on-chain analytics platform Coinglass added that June 2022 will be the worst year on record, surpassing even 2013 in terms of losses.
In a sign of investor stress from spot price performance, more bitcoin was sold at a loss than ever before in the three days to June 19, according to on-chain analytics firm Glassnode. A sign of stress.
Other concerns center on the financial health of bitcoin miners. However, not everyone agrees that network participants are feeling the pressure to capitulate.
Zhu Su is known for his investment achievements and influence on the market in the cryptocurrency field, but he has also been pursued and charged for alleged fraud, tax evasion and money laundering.
JinseFinanceA wallet linked to Su Zhu, co-founder of Three Arrows Capital (3AC), recently saw movement for the first time following months of dormancy since his arrest. Etherscan records unveiled multiple transactions involving ERC-20 tokens to and from an address labelled suzhu.eth on Nov. 29.
JoyDespite being behind bars for two months, Su Zhu's wallet, linked to the co-founder of the collapsed Three Arrows Capital, has unexpectedly sold millions of Altcoins, sparking intrigue within the crypto community.
Jasper3AC's other Co-Founder Kyle Davies is still at large, and his whereabouts remain unknown.
ClementCrypto hedge fund founders Zhu and Davies arrested in Singapore for non-cooperation with creditors.
BrianHe accused them of conspiring to attack Luna and stETH.
BeincryptoSBF and Zhu Su trade blows over alleged media control.
cryptopotatoBoth Zhu and Davies’ locations also remained unclear. It is speculated that they currently reside in Dubai and Bali, respectively.
cryptopotatoThe co-founders had reportedly disclosed only partial information regarding the defunct hedge fund's assets.
Beincrypto“We are in the process of communicating with relevant parties and fully committed to working this out” Su Zhu stated.
Cointelegraph