After subsequent sessions of sideways trading, Bitcoin (BTC) bears appear to be gaining strength against the first cryptocurrency.
At the time of writing, Bitcoin had lost the $67,000 support zone in the past 24 hours, reaching a low of $65,000. Attention now turns to the next price move, with Bitcoin analyst CryptoCon In an X-post on June 14, we noted that investors should anticipate further corrections in the coming days.
According to CryptoCons According to analysis, a critical support level has emerged that could strongly influence the direction of the market at the 20-week exponential moving average (EMA), currently at $61,603. The analyst emphasized that the situation is now a “waiting game” to observe Bitcoin’s next move.
“The number to watch: $61,603 according to the most reliable sound support, the 20-week EMA. <…> We just have to wait and see,” said the expert.
Historical impact of 20-week EMA
The 20-week EMA has historically been a reliable support level throughout various market cycles. For example, Bitcoin experienced rapid growth during the early bull run of 2012-2013, using the 20-week EMA as a springboard for higher prices. A notable retest of the EMA in April 2013 preceded another significant price increase.
Conversely, in bear market phases such as those in 2014-2015 and 2018-2019, we saw Bitcoin break below the 20-week EMA, which was a sign of extended decline. For example, in late 2018, Bitcoin’s decline below the EMA led to an extended bearish period until it regained support in early 2019.
In contrast, the sudden market crash caused by the COVID-19 pandemic in 2020 briefly pushed Bitcoin below the EMA.
Breaking Bitcoin’s Precipitous Decline
Elsewhere, several theories have been proposed to explain Bitcoin’s sharp decline, which plummeted to a low of $65,000. For example, cryptocurrency analyst Ali Martinez suggested in a post on June 15 that recent miner activity may have contributed to the decline. Martizenz noted that miners sold more than 1,200 Bitcoins, worth over $79.20 million, adding to the downward pressure.
On the other hand, crypto trading expert Michaël van de Poppe pointed out that Bitcoin and the broader crypto market have been influenced by a combination of aggressive signals from the Federal Reserve, a strong dollar and regulatory uncertainties.
Despite the current price consolidation, the overall sentiment appears cautious yet optimistic. This is supported by data from Martinez that suggests investors are buying on the dip. Specifically on the HTX crypto exchange, the Bitcoin Taker Buy Sell Ratio rose to 545, indicating bullish sentiment towards the leading cryptocurrency.
Meanwhile, Bitcoin aims to keep its price above $66,000 and target $67,000. At the time of writing, Bitcoin was trading at $66,210, reflecting a 24-hour correction of more than 1%. On the weekly chart, the price remains in the red with a loss of almost 5%.
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