Bitcoin Erases Gains, BTC Slide 30% as Bears Target the Psychological $20k Level

Bitcoin Erases Gains, BTC Slide 30% as Bears Target the Psychological $20k Level
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Bitcoin prices are swinging at press time. The dead cat bounce of late June 15 didn’t spark demand. BTC is back in negative territory, inching closer to the $20k psychological support line.

Technically, sellers are still in control. The coin is down over 30 percent in the past trading week. Amid the sell-off, traders expect prices to make a turnaround and change their fortunes.

However, from the chart, price action is firmly skewed for sellers, and the general trading sentiment points to fear, reading from the Fear and Greed Index. Considering the failure of bulls to add to their longs and push prices above immediate resistance levels, it is highly likely that BTC may plunge back to H2 2020 zone.

The Fidelity CEO Bitcoin Confidence

This preview is despite buoyant bulls. Abigail Johnson, the CEO of Fidelity Investments, whose position in crypto and Bitcoin is well tabulated, earlier on said the crypto winter could offer the best entries for investors.

While the over 65 percent plunge from 2021 peaks may be a factor for technical traders, a clearly defined base could be the only signal for traders to jump back. Thus far, with high-profile DeFi protocols experiencing liquidity challenges coupled with the U.S. FED raising rates to tame inflation, it might be more challenging for BTC bulls to shake off determined bears.

Besides Abigail’s confidence, other factors supporting Bitcoin in the short to the medium term include increasing adoption. The latest news indicates that the Spanish airline, Vueling, will begin accepting Bitcoin.

Bitcoin Price Analysis

bitcoin price

From the daily chart, BTC is under immense selling pressure. Prices are trickling down even after the recovery of June 15. The correction of the June 14 undervaluation, which forced prices higher but below the middle BB, could have provided buyers with a pad to build their longs.

However, with prices dumping, traders can continue unloading on any attempt higher. The immediate resistance level in this arrangement is $24k, while support lies at $20k. If prices drop below this reaction level, the odds of BTC slumping to $16k, or worse, would be elevated.

On the flip side, a refreshing rally above $24k building on June 15 bullish pin bar may see a lift-off back to $30k in a recovery.

Technical charts courtesy of Trading View.

Disclaimer: Opinions expressed are not investment advice. Do your research.

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