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HomeCryptoAfter a Horrible June Close, Is $17.5K The Next Stop For Bitcoin?

After a Horrible June Close, Is $17.5K The Next Stop For Bitcoin?

Bitcoin’s price still fails to indicate any form of strength, even after crashing by more than 70%. The price is currently on a slow decline after a small rebounding from the $17.5K a couple of weeks ago.

Technical Analysis

By” data-wpel-link=”external” target=”_blank”>Edris

The Daily Chart

The $17.5K will be considered a key resistance if the price breaks it to the downside. Accordingly, a further drop towards the $15K range and even lower levels could be anticipated in the mid-term. However, a fake breakout and quick reversal is also possible, a pattern that could initiate a rally in the short term. Although, even in this case, the $24K and $30K static resistance levels and the 50-day moving average, currently around $26K, would be critical obstacles. The probability of a bullish reversal is very low before the price breaks above the $30K level.

Source: TradingView

The 4-Hour Chart

On the 4-hour timeframe, the price is consolidating in the $17K-$20K range, forming a triangle pattern. This could be a reversal or a continuation pattern.

A bullish breakout’s targets would be the $24K zone and then the $30K area where the previous bearish flag formed earlier.

Source: TradingView

On the other hand, a bearish breakdown would cause the price to drop rapidly towards $17.5K. The RSI indicator also shows values below 50%, which points to a relative dominance by the bears. This structure suggests the probability of a bearish breakout is relatively higher.

On-chain Analysis

By” data-wpel-link=”external” target=”_blank”>Edris

Bitcoin: Long Term Holder SOPR

Bitcoin’s ruthless downtrend in the past few months has led to massive realized losses by investors. Even the long-term holders, a cohort that usually spends their coins in profit, are currently realizing losses. This behavior often occurs during the last phase of a bear market, a period in which even the long-term holders begin panic selling or “capitulating.”

These holders typically have large amounts of Bitcoin because they’ve probably accumulated their coins at lower prices and have held them for a long time. So, they would inject a significant supply into the market, which would usually trigger the bear market’s last crash.

Source: CryptoQuant

Eventually, the bottom would form when the smart money accumulates these cheap coins. The long-term holders’ SOPR metric demonstrates the intensity of profits or losses realized by this cohort. This metric is currently trending below 1, indicating that the long-term holders are realizing losses daily, which points to more pain and decline in the short term and a potential bottom in the near future.


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Disclaimer: Information found on koinaly is those of writers quoted. It does not represent the opinions of koinaly on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.



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