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According to Michael van de Poppe, “Magnificent fuckery going on today on crypto and Bitcoin,” and that appears to be the case as Bitcoin went below $29,000 in the late hours of June 22nd, causing a new wave of fear in the market. Since BTC began to decline, analysts and traders have seen $29k as a crucial support level. While the king coin did quickly recover to trade at $34,156 at the time of this article, it also created new market significant milestones.
How much lower can Bitcoin go?
Analysts have lost faith in the coin’s ability to retain close support since the BTC market’s volatility awakened every investor. As the currency fell to a low of $28,800 yesterday, it erased all gains achieved since the beginning of 2021. BTC was trading around $29,400 at the start of the year, and when it went below that level, $24,000 was viewed as the sole significant support going ahead. Michael van de Poppe furiously tweeted,
“Let’s have that final crash to $24K and get over it #Bitcoin [sic].”
However, this dip helped identify the next important levels for Bitcoin. According to Poppe $35,500 is the next crucial breaker. This is because the previous breakout, in Feb 2021, occurred at the same mark. For the coin to engage in a solid bull run, BTC will have to breach that level.
In another story, the dip confirmed the speculated head and shoulder (HnS) formation as the fall helped establish an accurate neckline. According to popular trader DonAlt, the HnS pattern created the neckline at $32,000. Historically, the neckline has been observed to mark an important breakout level as the coin usually bounces upwards from it. Nonetheless owing to the volatility, the range between $20k and $32k can rustle Bitcoin’s movement in either direction.
In an intriguing event, Bitcoin’s current movement seems to have nullified the effect of the June 19 death cross. Rekt Capital, a trader and analyst, brought this to our notice as the 4-year cycle (4YC) begins to move in predictable but unexpected directions, contrary to what the death cross implies.
Based on past observations, BTC should have retraced towards the $18k – $20k levels following the latest death cross. Despite the fact that the levels reflect the 4-year cycle level (red line), BTC will have to lose the active 4YC level of $29,000 in order to achieve them (black line).
Why is everyone selling?
Following the downturn, panic selling occurred, and its consequences were plainly visible on the market. The rapid rush of selling by short-term investors favoured long-term holders, who began to accumulate significantly. Similarly, the number of active Bitcoin addresses fell dramatically, reaching a 14-month low of 43,639.482. (ref. Glassnode 7D MA chart).
Moving forward investors should watch the aforementioned levels in determining their stance on buying/selling BTC. Just make sure the volatility doesn’t rattle you.