Bitcoin (BTC) needs to hold current levels and work to reclaim higher ones to avoid a crash in the $20,000 range, the latest analysis warns.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Is $20,000 incoming?
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD still failing to cement $30,000 as support on the May 16 Wall Street open.
The pair had seen fresh losses after the weekly close at $31,300 — this, in itself, disappointing market participants after sealing a record seventh consecutive red weekly candle.
Even as the Luna Foundation Guard (LFG) revealed that it had sold almost all of its BTC reserves during last week’s Terra (LUNA) and TerraUSD meltdown, the implied lack of future selling failed to lift the mood on markets.
“Coming days going to be very important IMO. Keep these levels, grind higher from here,” popular trader Phoenix summarized in a Twitter post on the day.
“If it fails, my eyes are on $21.8K–$23.8K. Didn’t expect to keep those in mind again, lol. I was wrong thinking Q1 structure was a trend reversal start.”
Phoenix is far from alone in forecasting a return to levels even lower than last week’s floor at just under $24,000.
Joining the consensus, fellow trader and analyst Rekt Capital likewise pointed to $20,000 being an area of interest should current levels fail to hold and buyers not materialize.
#BTC Monthly Timeframe
Price is at ~$28800 support
In 2021, $BTC formed long downside wicks against this support, indicating strong buy-side interest here
Let’s see if buyer’s show up soon because next major Monthly support lower down is at ~$20000 (orange)#Crypto #Bitcoin pic.twitter.com/TKcvFcSENh
— Rekt Capital (@rektcapital) May 16, 2022
Last week’s action, he added, could have already created a new trading range for Bitcoin with its macro range low at $28,800 figuring as its ceiling.
“If this turns out to be the case, Macro Range Low could flip into resistance to again reject price to lower levels,” he explained.
Meanwhile, some remained cautiously optimistic on the short-term prospects, including Cointelegraph contributor Michaël van de Poppe.
“Not sure whether…