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- The day-to-day structure and trend of the time frame favored the sellers.
- A reversal was a possibility, but a further 12% drop seemed more likely.
Bitcoin [BTC ] had a strong bearish outlook on the higher time frame price charts. The $25.2k level was a critical support level – it had served as resistance in February and March, but the bulls had been exhausted by the relentless selling pressure of the past few weeks.
Read Bitcoin [BTC] Price Forecast 2023-24
Investors fled to self-custody and stock exchange offerings dwindled rapidly. This trend developed after the uncertainty surrounding Binance and Coinbase following the SEC lawsuits. Therefore, it probably does not represent accumulation and further bearish pressure was possible for BTC.
We may be looking at prices below $20,000 again in 2023
Source: BTC/USDT on TradingView
A drop below $20,000 sounds like an alarming warning at first glance. Bitcoin is trending up in 2023. Think of the increase from $19.5k to $31k in March and April. Even if Bitcoin drops to $22,000, it may be just a correction from the impulse wave to the upside.
That said, Bitcoin’s trend was clearly bearish. The price has posted a series of lower highs and lower lows after breaking the higher low of $27.2k on April 24, breaking the previously bullish market structure.
The RSI has been mostly below the neutral 50 since mid-April, showing bearish momentum. The CMF fell below -0.05 for the first time in a month, indicating a significant flow of capital from the Bitcoin market.
In the South, the $23.9k – $24k area could offer some support. A jump from this level to retest $25.2k could be followed by another step down. In such a scenario, the $22k and $19.5k levels are the ones to watch out for.
Stock market inflows peaked close to April’s highs
Source: Sentiment
The BTC exchange net flow metric showed the daily flows across exchanges. The statistic suggested continued inflows over the past four days. This indicated that a rise in selling pressure was imminent. But while there was a selloff that drove prices down, the average coin age was on the rise.
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The dormant circulation stat saw a small spike on June 14. Overall, Bitcoin’s price action and statistics pointed to a bearish bias. The rising average coin age suggested whales may not be part of the selling pressure.