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Last week, the Bitcoin (BTC) price gave a weekly candle closing above the $20000 mark, while the long-tail rejection also accentuated demand pressure. Although the crypto market witnessed high volatility this week, the buyers managed to sustain above the mentioned level. However, the ongoing recovery facing strong supply pressure at $22800 foretells a minor pullback.
Key points:
- The BTC price registered a 7.21% gain over the past four days.
- The 20-day EMA strengths the seller’s defense at $23000
- The intraday trading volume in the Bitcoin is $17.7 Billion, indicating a 24.14% loss.
Source-Trading view
The June second-and-third week’s crash plummeted the BTC/USDT pair to a low of $17,78. Although the coin price gave a daily candle closing below the $20000 mark on June 18th, the intense buying pressure on the following day pushed the price above the psychological level.
As a result, the aggressive sellers trapped in the $20000 fakeout would currently be in a heavy loss or could also get force liquidated. Moreover, former institutional investor- @PlanB has recently tweeted, “Bitcoin sellers realized -$25B (-39%) loss in June (on-chain),” similar to some previous correction phases.
Capitulation!
Bitcoin sellers realized -$25B (-39%) loss in June (on-chain). Similar to Nov 2018, Jan 2015 and Sep 2011 (dark blue). pic.twitter.com/IyiNWGtcil
— PlanB (@100trillionUSD) June 26, 2022
Therefore, the liquidation of short-term sellers bolstered BTC’s price to sustain above the $20000 mark and trigger a new relief rally. Over the past four days, the coin price has gained 7.21% and currently trades at $21460.
However, the long-tail rejection candle on June 21st and today (June 26th) accentuate high supply pressure near the $21700 mark. Thus, if seller pressure persists, the BTC trades can expect a retest to the $20000 mark.
On a contrary note, if bulls undermine the selling pressure, the sustained buying momentum could drive the coin price to $6.57% higher to $22800.
Technical indicator-
The daily-RSI slope escapes from the oversold region and climbs above the 20-SMA, reflecting the coin price is stabilizing from the aggressive sell-off.
However, a bearish sequence among the crucial EMAs (20, 50, 100, and 200) highlights an overall downtrend. Moreover, the fast-moving 20 EMA aligned with $22800 could assist sellers in continuing the prevailing downtrend.
- Resistance level- $22800 and $25500
- Support level- $20000 and $18000
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