Bitcoin (bitcoin) held steady at Wall Street’s open on June 20 as nervous traders awaited a short-term trend decision.
Traders mark Bitcoin ‘macro bottom’
The weekend spooked most markets and liquidated speculators, with prices falling to $17,600, bitcoin’s lowest level since November 2020.
Now, with U.S. stocks cooling off at the start of the week, relative calm is characteristic of the biggest cryptocurrencies.
“Good reaction to the bottom of our 16K-20K demand zone,” popular trading account Credible Crypto Comment Regarding the price action over the weekend.
“The 12 hour bleed is gone in 2. But it’s not confirmed as a reversal. Focus on key HTF levels, don’t get too obsessed with staring at red 5 minute candles – they can be wiped out in a split second.”
When in doubt, zoom out
— Crypto Tony (@CryptoTony__) June 20, 2022
The week started with various commentators sharing their thoughts on the price structure on HTF or higher time frames.
“BTC is in the macro bottom of this cycle,” trader and analyst Rekt Capital continue.
“Investors will be rewarded for buying here over the next few years. However, many are still waiting for BTC prices to go lower to buy. It’s like waiting for summer to come and finally it’s 33C outside, but now we hope It’s 35C.”
Rekt Capital also described the $20,000 BTC price as a “gift” to buyers.
“BTC data science shows that anything below $35,000 is an area that has historically delivered outsized returns for long-term Bitcoin investors,” part of a tweet of the day read.
Meanwhile, on-chain analytics resource Whalemap highlighted major investors buying the dip below the groundbreaking $20,000 level.
New whale levels formed over the weekend at the dump.
The accumulation was quite large, >100k BTC, and occurred on June 18th.
Prior to this, most of the December 2018 Bitcoin had moved from the previous 4k bottom…probably OTC
Looks like a good short term support pic.twitter.com/rJbV26ZifG
– Whale map (@whale_map) June 20, 2022
PlanB: Bitcoin is just ‘oversold’
At the same time, Bitcoin fell below the all-time high of the previous halving cycle, adding to the pressure on the popular stock-to-flow (S2F) BTC price model — and criticism of them.
Just as market analyst Zack Voell has publicly called S2F a “scam” on social media, its founder, quant analyst PlanB, insists the theory behind it is still sound.
“Most indicators (S2F, RSI, 200WMA, realized, etc.) are at extreme levels,” he said. explain In a Twitter thread on June 18.
“Does this mean that all indicators are ‘invalid’ ‘debunked’? No. Investing is a game of chance and indicators provide situational awareness: BTC is oversold.”
Voell’s comments come after BTC/USD first fell below the second standard deviation band relative to the S2F forecast price.
Bitcoin is not dead.
But the Stock-to-Flow scam definitely is. pic.twitter.com/ZYZ0NR8n92
— Zack Voell (@zackvoell) June 19, 2022
As PlanB pointed out, Bitcoin’s Relative Strength Index (RSI) was at an all-time low over the weekend.One Classic Overbought and Oversold Indicatorsthe RSI essentially shows that, based on historical context, BTC/USD is trading well below what its fundamentals warrant.
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