Bitcoin Falls Below $20,000 Again, So What?

Arman Shirinyan

Bitcoin failed to break through the $22,000 resistance level and may now plunge back to the June low

Contents

  • Positive scenario
  • Negative scenario

Bitcoin lost the battle against the bears and once again plunged below $20,000, destroying the hopes and beliefs of investors who believed that the new rally had already begun and Bitcoin would now head towards the old ATH.

During today’s trading session, Bitcoin briefly fell below $20,000, but then rallied back above $20,000 and is now consolidating at the support level. Unfortunately, there isn’t much volume on the trading pair, suggesting that investors and traders aren’t ready to back another rally just yet, not short of digital gold.

Positive scenario

The sudden return of purchasing power to the market is unlikely to occur without significant drivers in the traditional financial market, which means Bitcoin will only recover with the help of retail investors and whales.

Bitcoin Chart
Source: Trading View

As Bitcoin targets a further drop to the local support level of $18,800, the market shouldn’t worry too much as a small double-top chart pattern could become the basis for another rally.

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Negative scenario

With the drop below the $18,800 support level, we could see an increase in selling pressure caused by traders who grabbed cheap BTC around the mentioned price, as they would most likely prefer to break even. of their position or sell at a slight loss.

Due to the lack of inflow into the market, further pressure on BTC could lead to a catastrophic drop in prices and expose investors to even greater risks.

For now, volatility in the cryptocurrency market remains low.