Bitcoin closes worst week of 2022 and trader warns: “there are no clear bullish signs”

The week between June 12 and 19 was the worst of the year for Bitcoin (BTC), according to data from the Coinglass platform. During this period, the cryptocurrency has accumulated losses of 22.85% and surpassed the 15.73% recorded in early January.

This was also the second consecutive week that BTC closed lower, after breaking a previous nine-week streak of declines. Currently, one BTC is worth around $20,700, according to data from CoinMarketCap.

BTC outperforms worst weekly performance of 2022. Source: CoinMarketCap.

Since last week, the price of BTC has gone from $27,000 to a low of $18,000 for the period. Although the cryptocurrency rehearsed a recovery on Sunday (19), the price still shows no signs of recovery.

In this context, the US$ 20 region has become a key post. For sellers, it has become the main support against declines, while buyers see this level as an indicator of potential resistance.

No clear bullish signs

Overall, sellers expect the price to drop to around $16,000. Felipe Escudero, from the BitNada channel, expects that BTC will at least be able to close the week above $22,000.

For the trader known by the pseudonym Capo, the current scenario is a repeat of BTC’s previous resistance between $31k and $32k. But the trader agrees that the main target for BTC is still bearish and also projects devaluations up to $16,000.

Upon reaching $18,000, the BTC price had a slight recovery and returned above $20,000, but the trader questions this movement. Capo reiterates that there is no sign that supports this appreciation and, therefore, nothing that indicates a recovery in the market.

In fact, the trader explains that these bullish moves serve to turn old supports into resistances. That is, BTC falls below important levels and even rises again, but without breaking the previous support.

“This happened between $31k and $32k, both supports were broken and used as resistance. The same is happening with $20k and $21k,” she explained.

Peter Schiff, chief economist and global strategist at Europac and an ardent critic of BTC, said the price’s return above $20,000 was “just another trap for buyers”.

Can Bitcoin Recover the 200 Week Average?

Most negative week of 2022, and to top it off, BTC price dropped below the previous halving all-time high for the first time. Another third “mark” affected the market over the weekend as the BTC price dipped below the 200-week moving average.

This has happened only twice in the history of cryptocurrency. The first time such a scenario worked was in March 2020, in the famous Coronacrash, when BTC lost 50% of its value in just one day.

However, the cryptocurrency rebounded and recorded over 2,000% appreciation between March 2020 and November 2021. Another trader, known as Rekt Capital, said that as long as BTC does not rise above the 200-week average again, the market will not will recover.

Otherwise, BTC could form an accumulation range below the 200-week moving average and then bounce back up. And that, warned Rekt, would also be a first in the history of cryptocurrency.

Read also: Korea bans Terra (LUNA) developers from leaving the country

Read also: Solend Protocol blocks large investor funds and then goes back

Also Read: BIS Announces Crypto Market Intelligence Platform Amid DeFi and Stablecoins Collapse

Similar Posts

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.