Bitcoin (BTC) made an attempt to surpass the $20,000 mark on June 19, but encountered a $7,000 weekly decline. Market data indicated that BTC/USD saw a rise from a low of $17,592 on the Bitstamp exchange before being firmly rejected at $20,000.
The low liquidity in trading conditions resulted in a challenging weekend for holders as the leading cryptocurrency dropped to levels not seen since November 2020. Despite some recovery, the market sentiment felt familiar. The $20,000 mark had become a resistance level, which had served as an all-time high for Bitcoin from December 2017 to December 2020. This was also the first instance where BTC/USD dropped below the previous peak from a previous halving cycle.
Experienced market participants understood that the recent price movements aligned with historical bear market trends. Analysts pointed out that a 74% decline, as seen currently, is not uncommon in Bitcoin’s history, with the cryptocurrency having experienced four major collapses of over 80% in the past.
Looking forward, the focus shifted to $17,000 as a potential short-term target, with indications that a short squeeze was not likely at that moment. The 200-week moving average (MA) of Bitcoin, a crucial support level during bearish periods, continued to play its established role.
Sellers Offload Coins at a Record Loss
The red candle of about $7,000 for the week was poised to be one of the largest in Bitcoin’s history in terms of dollar value. On-chain analytics by Coinglass revealed that June 2022 was on track to mark the worst month ever in terms of losses, surpassing the losses seen in 2013.
As a sign of investor pressure due to the spot price performance, more Bitcoin was sold at a loss in the three days leading up to June 19 than any other time. Concerns were also raised about the financial stability of Bitcoin miners, although not everyone agreed that network participants were under significant pressure that might lead to capitulation.
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