The second quarter of 2022 saw the cryptocurrency market’s downward trend continue. Bitcoin’s price has decreased from over $69,000 in November 2021 to about $19,000 as a result of the ongoing crypto market crash.
The cryptocurrency had a roughly 40% decline in June, according to Coin Metrics data, making it its lowest month since 2010.
The 30 percent price increases that Bitcoin and Ethereum experienced last week were only temporary. Throughout the past week, both market leaders have lost more than 10% of their value, with Bitcoin dropping below the crucial $20,000 support level.
Because Bitcoin was unable to overcome the $22,000 local resistance level, it began to steadily retrace to the $20,000 price range before falling below $19,000. Fortunately, the market may experience some upward movement next week.
Will There Be a Recovery This Week?
The local bottom for the digital gold was reached on June 17 when the daily candle on the Bitcoin chart closed at $18,596. The digital gold subsequently climbed back above $20,000 the next day.
A possible turning point for an asset’s price performance in the future is created by such intensely volatile movement.
Currently, Bitcoin has to drop by about $200 in order to reach the support. Sadly, there is no assurance that the “orange currency” would immediately bounce off the indicated support line because it still requires a sizable amount of inflows.
For each rally, bullish or bearish, the fading volume typically serves as the primary reversal indicator. Volume characteristics for Bitcoin indicate that bears are aggressively losing market sway and may no longer be able to sustain the decline.
At the time of writing BTC is trading at $19,165 and is down by more than one percent in the last 24 hours.
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