Bitcoin (BTC) held steady at Wall Street’s open on June 20 as panicked traders await a short-term trend decision.
Trader Marks Bitcoin In “Macro Bottoming Period”
Data from Cointelegraph Markets Pro and TradingView shows that at the time of writing, BTC/USD has climbed to a three-day high, down $21,000.
The weekend shook much of the market and ended with speculators traveling to $17,600, marking bitcoin’s lowest level since November 2020.
Now, comparative calmness is characteristic of the largest cryptocurrencies, with the United States stock calm at the start of the week.
“Good Response From Below Our 16K-20K Demand Zone,” Popular Trading Account Trusted Crypto commented On the price action of the weekend.
“12 Hour Bleeding Erased in 2 Hours. No confirmation that it has reversed yet. Concentrate on key HTF levels and don’t get caught up in staring at the red 5-minute candles – they can be erased in an instant. “
When in doubt, zoom out
— Krypto Tony (@CryptoTony__) 20 June 2022
The idea of focusing on HTF, or higher time frame price formations, was shared by various commentators as the week began.
“BTC is in a macro bottoming period for this cycle,” said fellow trader and analyst Rekt Capital Continuous,
“In the coming years, investors will be rewarded for buying here. Nevertheless, many are still waiting for $BTC to go even lower to buy. It’s like waiting for summer to come, and the end It is 33C out in the U.S. but now we expect 35C.”
Rekt Capital additionally described the $20,000 BTC price as a “gift” for buyers.
“BTC data science shows that anything below $35,000 is an area that has historically achieved ROI for long-term bitcoin investors,” part of a tweet that day Reading,
Meanwhile, on-chain analytics resource Whalemap highlighted a decline by major investors to levels below $20,000.
New levels of whales have formed at the weekend dump.
The accumulation is quite large, >100k BTC, and happened on June 18th.
Prior to this, December 2018 a large chunk of bitcoin has moved from the previous 4k bottom… may be OTC
Looks like a great short term support pic.twitter.com/rJbV26ZifG
— whalemap (@whale_map) 20 June 2022
PlanB: Bitcoin is simply “oversold”
As bitcoin moved below its previous halving cycle, meanwhile, pressure mounted on the popular stock-to-flow BTC price model – and criticism of them.
RELATED: ‘Worst quarter ever’ for stocks – 5 things to know in bitcoin this week
As market analyst Zack Voel openly called S2F a “scam” on social media, its creator, quant analyst PlanB, said the theory behind it held true.
“Most of the indicators (S2F, RSI, 200WMA, Realized etc.) are at extreme levels,” he Explained In part of a Twitter post on June 18.
“Does this mean that all indicators are ‘invalid’ and ‘debunked’? No. Investing is a game of probabilities and indicators give situational awareness: BTC is oversold.”
Voell’s remarks first came after BTC/USD broke below the second standard deviation band relative to the S2F forecast price.
Bitcoin is not dead.
But the stock-to-flow scam absolutely is. pic.twitter.com/ZYZ0NR8n92
— Zack Voell (@zackvoell) June 19, 2022
As noted by PlanB, bitcoin’s relative strength index, or RSI, was at its lowest level in history over the weekend. A classic overbought vs oversold indicator, the RSI essentially suggests that BTC/USD is trading much lower than its fundamental warrants based on historical context.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, so you should do your own research when making a decision.
