Bitcoins Decline Continues as Bearish Sentiment Strengthens

Following a series of sideways movements, Bitcoin (
BTC
)
bears
seem to be gaining strength over the original
cryptocurrency
.
At the moment,
Bitcoin
has dropped below the $67,000
support
level within the last day, falling to as low as $65,000. All eyes are now on the next price action, with
CryptoCon
, a Bitcoin analyst, indicating in a recent
X
post
on June 14 that traders should brace for further corrections in the upcoming days.
According to
CryptoCon’s
assessment, a crucial support level that could significantly impact market direction is now visible at the 20-week exponential
moving average
(EMA), currently standing at $61,603. The analyst emphasized that it is now a waiting game to observe what Bitcoin does next.
“The key number to keep an eye on is $61,603 as per the most reliable support level, the 20-week EMA. <…> It’s simply a waiting game,” stated the expert.
Historically, the 20-week EMA has proven to be a solid support level throughout various market cycles. For instance, during the early
bull run
of 2012-2013, Bitcoin witnessed rapid growth, using the 20-week EMA as a launching pad for higher prices. A significant retest of the EMA in April 2013 was followed by another substantial price surge.
On the other hand, bear market phases such as those in 2014-2015 and 2018-2019 saw Bitcoin breaking below the 20-week EMA, indicating prolonged downturns. In late 2018, Bitcoin’s drop below the EMA led to an extended period of bearish sentiment until it found support in early 2019.
In contrast, the sudden market crash triggered by the COVID-19 pandemic in 2020 briefly pushed Bitcoin below the EMA.
Various theories have been proposed to explain Bitcoin’s sharp decline, dropping as low as $65,000. For example, analyst Ali Martinez suggested in a post on June 15 that recent actions by miners might have contributed to the drop. Martinez noted that miners had sold over 1,200 Bitcoins, valued at more than $79.20 million, adding to the downward pressure.
On the other hand,
crypto trading
expert Michaël van de Poppe mentioned that Bitcoin and the wider crypto market have been impacted by a mix of hawkish signals from the Federal Reserve, a strong dollar, and
regulatory
uncertainties.
Despite the current price consolidation, overall sentiment remains cautious yet optimistic. Data from Martinez shows that investors are buying during the dip. Specifically, on the HTX
crypto exchange
, the Bitcoin Taker Buy Sell Ratio surged to 545, indicating bullish sentiment towards the leading cryptocurrency.
Bitcoin is currently striving to maintain its price above $66,000 and aim for $67,000. At present, Bitcoin is trading at $66,210, showing a 24-hour correction of over 1%. On the weekly chart, it is still in the red with a nearly 5% loss.
Disclaimer:
The information provided in this article should not be considered as investment advice. Investing in cryptocurrencies is speculative and involves risk to your capital.