$20,000 in sight. Bitcoin (BTC) price lost $23,000 and $22,000 within 24 hours. The bears are a cruel reminder that it may be too early to hope for a sustained bullish recovery.
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Blood red on bitcoin price
Today, August 19, 2022, the price of bitcoin on Bitfinex dropped to $21,153. At the time of writing, the cryptocurrency is trading at $21,251. Its price is currently recording a significant loss of 8.82%.
All days this week closed in the red despite gains above $25,200 on August 15. Markets recorded a sixth consecutive bearish candle today, causing Bitcoin to lose major bullish support on its 200-week moving average.
Cryptocurrency winter drags on, there is no spring yet
Today’s significant decline is a reminder that bitcoin is still in a bear market despite a rally that allowed it to temporarily reconnect with $25,000.
21st Paradigm founder Dylan Leclerc has been posting a daily price chart of bitcoin, pointing to similar behavior at $40,000, then $30,000 and “now” at $20,000.
The chart shows that at these levels, Bitcoin experiences a relatively short rise before experiencing a sharp fall.
It also shows the similarities between bitcoin’s price fluctuations and its RSI. Based on this analogy and historical data, this RSI could lock in further declines and thus the price of bitcoin could approach $20,000.
With all this data in mind, Dylan Leclerc criticizes the fact that “calls for a new bull run have been made at all levels” in a bear market that appears to be far from over.
The whale-protected support zone at $22,800-$23,400 has failed to withstand bearish pressure. A rise above $25,200 appears to signal the end of the short-lived rally. Markets are now heading for the 20,000 level. Will the price of bitcoin make a move below this symbolic level in August?
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