Bitcoin ‘strongly bearish’ below $22,500 as BTC price falls 6%

Bitcoin 'strongly bearish' below $22,500 as BTC price falls 6%

Bitcoin (BTC) fell sharply on August 19 as a week of sideways action ended in disappointment for bulls.

Hourly candlestick chart of the BTC/USD pair (Bitstamp). Source: Trade View

New floors: “just a little time”

Data from Cointelegraph Markets Pro and TradingView tracked the 6.2% drop in the BTC/USD pair on an hourly basis.

In response, traders expected a consolidation above current spot price levels, which were below $22,000 at the time of writing, could be allowed.

“Well, we hope it was a search for liquidity, otherwise it’s over,” said declared a morose Crypto Chase to his Twitter followers.

Another account, Il Capo of Crypto, which had long been predicted to return to lower levels, himself managed to according to the new lows to be “just a little time”.

A consolidation below $22,500, he warned in his latest update, would be “very honest”.

$BTC. Second choice in hand. Any test of $23,500 as resistance is a good selling opportunity. Consolidation below $22,500 (clear break + using the level as resistance) would be very bearish = $21,000 or less. New floors are just a matter of time. il Capo Of Crypto (@CryptoCapo_) August 19, 2022

Meanwhile, before the fall, Venturefounder analysts declared that anything below $23,000 would be a “reasonable price to buy for the longship,” adding that bitcoin is unlikely to have broken out of its bear market thus far.

The fact that the Relative Strength Index (RSI) is still near all-time lows shows how oversold the BTC/USD pair is, he explained.

However, there were signs of buying emerging below key bearish market support levels, including the 200-week moving average and key whale entry levels.

The 1-week candlestick chart of the BTC/USD (Bitstamp) pair with the 200-week moving average. Source: Trade View

According to data from the on-chain analysis firm CryptoQuant, exchange outflows for the opening hours of August 19 already amounted to 21,500 BTC.

Graph of bitcoin exchange outflow. Source: CryptoQuant

Ether repeats its gains in August

When it comes to altcoins, the impact of bitcoin’s return to three-week lows has been felt in predictable ways.

Also read: Short-term rally threatened if BTC breaks below $23,000

Ether (ETH), the largest altcoin by market cap, was down 5.2% on the day trading near $1,750.

Daily candle chart of ETH/USD pair (Binance). Source: Trade View

Other major cryptocurrencies lost more than 11%, with Dogecoin (DOGE) being the worst performer in the top 10, down 13.6%.

“Bearish bias now if $1790 is not recovered/returned as support,” wrote Crypto Chase. added about ETH as part of a separate tweet.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of All investment and trading involves risk, you should do your own research before making a decision.

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