Even though many cryptocurrencies are recovering today, bitcoin continues to suffer more losses. Interestingly, institutions seem to have already identified this, exiting as soon as the first signs appeared.
bitcoin takes everyone down
The high correlation of bitcoin stocks with the US stock market index is showing its impact both ways. While the S&P 500 Index (SPX) is down 8.5% in the past three trading days, bitcoin, has fallen more than 27.8% in those five days.
Most of them were alone in the last 24 hours. In fact, at the time of writing, BTC is down 16.6 percent to trade at $22.3k.
However, this does not seem to be the end of it as the next important support lies at $20,067. This level was last seen by bitcoin in December 2020. And, by all means, BTC is bound to hit it.
Not only because the price indicators are indicating a steep decline, but because this will be the only opportunity for BTC to bounce back. A bounce back to $20,067 would give it enough charges to move back towards $25k, which is the basis for the Fibonacci retracement.
Anyway, at the start of the downtrend, BTC was rising above the 23.6% Fibonacci level at $30.7k. Had this been successfully achieved, King Coin would have moved closer to the 50-day simple moving average.
These critical supports would have prevented the decline, but it is now weeks before Bitcoin is tested.
On the other hand, investors, especially institutions, have been cautious in their movements. Even before it turned into an accident, they managed to get their money out of the property.
During the week ending June 10, approximately $56.8 million was removed by institutions, with Ethereum seeing an outflow of $40.7 million. Naturally, higher outflows would have been noted in the following days, and this is proof of that.
In future, retail investors can start withdrawing their investments. Especially since realized profits have hit a 19-month low after the crash.
The BTC supply on the exchanges is yet to increase, indicating that investors are still avoiding selling. This is a good sign if bitcoin intends to recover soon.