Bitcoin (BTC) had a significant shift in mood on June 22, with multi-day highs giving way to a new drop below $20,000.
BTC may accumulate below a crucial trendline.
BTC/USD dropped to a low of $19,947 on Bitstamp, according to data from Cointelegraph Markets Pro and TradingView.
The biggest cryptocurrency had broken beyond $21,700 the day before, its greatest performance since June 16, but momentum slowed during Wall Street trade.
According to prominent trader and analyst Rekt Capital, the failure of BTC/USD to retake its 200-week moving average posed a risk (MA).
Bitcoin has previously kept the 200-week MA as support in past bear markets, with wicks below it signifying macro price bottoms.
“If BTC is unable to retake the 200-week MA as support… one of the possibilities that might occur would include downward to new lows prior to the establishment of an Accumulation Range for the first time below the 200-week MA,” he cautioned.
At the time of writing, the 200-week MA was $22,420.
Credible Crypto, a fellow trader, was more positive in the near term, telling Twitter followers that he did not expect the spot price to fall much more.
Zooming out, Crypto Tony also indicated the “demand zone” in which BTC/USD was currently trading.
“We can see a couple things here on the macro. We obviously separated ourselves from a distribution range. We are now putting the first demand zone in this range to the test. “A response is inevitable, but there hasn’t been a bottom in my view,” he tweeted.
“A wick down to $17k – $15k is possible.”
Whales are attempting to limit their BTC exposure.
Meanwhile, hints of change were already obvious in on-chain statistics for the major BTC hodlers.
According to the on-chain monitoring business Glassnode, Bitcoin whales deposited over 50,000 BTC to exchanges on June 20 and 21. This follows a single-day influx of 58,000 BTC on June 13.
Overall inflows from whale wallets were high on an intraday basis, albeit not at the levels witnessed during past sell-offs.
The same group, for example, transmitted over 80,000 BTC to exchange accounts on May 9, the biggest since March 2020.
As previously stated, whale buyers have built a possible significant support level just over $19,000.
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