With $20,000 in the red, traders are betting on a deeper plunge to June’s lows and beyond. Bitcoin (BTC) was expected to reach its lowest monthly close since 2020, Aug. 28, after the bulls lost control. Data ForexView indicated that BTC/USD crossed $20,000 within hours of the weekly candle being completed.
The couple had lost ground on the weekend and even $20,000 seemed vulnerable just days before the month’s end.
Bitcoin was trading at $19,900 as of the writing date — well below the June closing price.
It didn’t matter what kind or number of lines you had on your charts,” Material Indicators , an on-chain monitoring resource, was summarized this weekend along with bid and ask data from Binance’s order book.
“After JPow punched Friday’s market in the face, BTC lost its trend at the June low. Now it is up to you whether this local low holds. “Currently, we are not seeing enough bid liquidity for us to be excited.”
Material Indicators refers to the Aug. 26 Risk Asset Cacade, which was created by hawkish comments made by Jerome Powell (Chair of the United States Federal Reserve).
Powell’s speech at Jackson Hole’s annual economic symposium caused shockwaves across the equity markets, indicating that Powell does not intend to reverse or curtail key rate increases in the future. The day saw U.S. stocks lose a combined $1.25 trillion.
Bitcoin fell in step. While some buyers expressed interest in buying Bitcoin below $20,000 for their future purchases, the consensus was more negative.
Anbessa, a well-known trader, was looking at two scenarios that day. One involved a support/resistance flip to continue higher and the other a breakdown to $16,000-17,000
Crypto Tony, a fellow trader, added that “We need to see many before this becomes bullish.” in his latest update.
BTC supply at loss of 50%
On-Chain College’s analytics account received encouragement from On-Chain data that covered hodler profitability.
The recent price drop has reduced the profit share of BTC supply, which is now at levels not seen since previous macro market bottoms.
On-Chain College stated, “I have been waiting all bear markets for the Bitcoin Percentage of Supply in Profit drop below 50%.
It bounced slightly above 50.28% in June. It currently stands at 51.76%. This metric fell below 50% in every previous bear market + March 2020.