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Breaking $19,000 will be “very hard” for bears, according to Whalemap analysts, enabling Bitcoin to fall below the $20,000 highs of 2017.
On June 8, Bitcoin (BTC) drew closer to the critical $30,000 support, amid expectations of a massive crypto downturn.
Bulls line up to protect $30,000
Data from TradingView showed BTC/USD making repeated lower lows on short timeframes during June 8.
A prior drop sent the pair down to $32,000 before a brief comeback, with that level eventually giving way.
At the time of writing, Bitcoin was trading at levels not seen since the original $30,000 drop in May, with BTC aiming for $31,500.
As previously reported, traders have predicted a new capitulation event across cryptocurrencies, which could take about 20% off the whole crypto market valuation. In such a scenario, Bitcoin may trade for $25,000 in the short term.
“From a technical point of view its difficult not to see $30k being tested and probably break,” said Filbfilb, co-founder of trading package Decentrader.
“If this is to prove to be a bottom it would make sense to test the liquidity resting around 28k before bouncing. If there fails to be a response around those prices which quickly recovers weekly support of 32k, then the outlook will be bleak.”
A look at buy and sell positions on largest global exchange, Binance, shows support lining up at $30,500, with resistance curiously thin below $40,000.
$19,000 seen as ultimate floor
Meanwhile, important support regions for BTC/USD more widely begin at $28,000 for on-chain monitoring provider Whalemap.
Analysts utilised the “cohort-based realised price,” a statistic that extends realised price depending on the size of a wallet, as well as the prices at which current hodlers purchased Bitcoin when it was at its all-time high of $64,500.
“To conclude, there is massive confluence at the 19k level which makes it super hard for BTC to go lower than that,” the analysts tweeted.
“Another level with confluence is at 27-28k. At least a relief bounce from there would make a lot of sense.”
Nonetheless, should Bitcoin go below $20,000, it would be the first time in history that the high from a previous bull cycle has been broken.