Bitcoin (BTC) starts a new week still battling for $20,000 support as the market takes in a week of severe losses.
What felt all but impossible just weeks ago is now a reality as $20,000 — the all-time high from 2017 to 2020 — returns to give investors a grim sense of deja vu.
Bitcoin dipped as low as $17,600 over the weekend, and tensions are running high ahead of the June 20 Wall Street open.
While BTC price losses have statistically been here before — and even lower — concerns are mounting for network stability at current levels, with attention particularly focused on miners.
Add to that the consensus that macro markets have likely not bottomed, and it becomes understandable why sentiment around Bitcoin and crypto is at record low levels.
Cointelegraph takes a look at some major areas of interest for hodlers when it comes to Bitcoin price action in the coming days.
Bitcoin rescues $20,000 on weekly chart
At $20,580, Bitcoin’s latest weekly close could have been worse — the largest cryptocurrency managed to retain a key support level at least on weekly timeframes.
The wick below stretched $2,400, however, and a repeat performance could heighten the pain for those betting on $20,000, forming a significant price level.
Overnight, BTC/USD reached highs of $20,629 on Bitstamp before returning to consolidate immediately below the $20,000 mark, indicating that the situation remains precarious on lower timeframes.
While some call for a snap recovery, the overall mood among commentators remains one of more cautious optimism.
“Over the weekend, while the fiat rails are closed, $BTC dropped to a low of $17,600 down almost 20% from Friday on good volume. Smells like a forced seller triggered a run on stops,” Arthur Hayes, ex-CEO of derivatives trading platform BitMEX, argued in a Twitter thread on June 2.
Hayes postulated that the recovery came as soon as those forced sales ended, but more sell-side pressure may still come.
“Is it over yet … idk,” another post read:
“But for those skilled knife catchers, there may yet be additional opportunities to buy coin from those who must whack every bid no matter the price.”
The role of crypto hedge funds and related investment vehicles in exacerbating BTC price weakness has become a key topic of debate since the May Terra implosion. With Celsius, Three Arrows Capital and others now joining the chaos forced liquidations resulting from multi-year lows may be what is required to stabilize the market long term.
“Bitcoin is not done liquidating large players,” investor Mike Alfred argued on June 18:
“They will take it down to a level that will cause the maximum damage to the most overexposed players like Celsius and then suddenly it will bounce and go higher once those firms are completely obliterated. A story as old as time.”
Elsewhere, $16,000 is still a popular target, this in itself only equating to a 76% drawdown from Bitcoin’s November 2021 all-time highs. As Cointelegraph reported, estimates currently run as low as $11,000 — 84.5%.
“$31k-32k was broken and used as resistance. Same is happening with $20k-21k. Main target: $16k-17k, especially $16,000-16,250,” popular Twitter account Il Capo of Crypto summarized.
It additionally described $16,000 as a “strong magnet.”
Stocks and bonds have “nowhere to hide”
A limp outlook for equities prior to the Wall Street open, meanwhile, provides little by way of upside prospects for BTC on June 20.
As noted by analyst and commentator Josh Rager, the correlation between Bitcoin and stocks remains in full force.
The stars seem to be aligning for shorters. Globally, stocks are lining up their “worst quarter ever,” according to data current as of June 18, with crypto markets giving investors a taste of reality months in advance.