Bitcoin price wicks below $20K as whales send 50K BTC to exchanges

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Bit­coin (BTC) saw a dra­mat­ic change of mood into June 22 as mul­ti-day highs gave way to a fresh dive under $20,000.

BTC/USD 1‑hour can­dle chart (Bit­stamp). Source: TradingView

BTC could see accumulation below key trendline

Data from Coin­tele­graph Mar­kets Pro and Trad­ingView showed BTC/USD abrupt­ly halt­ing its lat­est gains to hit lows of $19,947 on Bitstamp.

The largest cryp­tocur­ren­cy had passed $21,700 the day before, its best per­for­mance since June 16, but momen­tum waned dur­ing Wall Street trading.

For pop­u­lar trad­er and ana­lyst Rekt Cap­i­tal, there was dan­ger in BTC/USD being unable to reclaim its 200-week mov­ing aver­age (MA).

As a clas­sic sup­port line in pre­vi­ous bear mar­kets, Bit­coin had for­mer­ly retained the 200-week MA as sup­port with wicks below it char­ac­ter­iz­ing macro price bottoms.

“If BTC can’t reclaim the 200-week MA as sup­port… Then one of the sce­nar­ios of what could hap­pen would involve down­side to new lows before the for­ma­tion of an Accu­mu­la­tion Range for the first time below the 200-week MA,” he warned.

The 200-week MA stood at $22,420 at the time of writing.

BTC/USD 1‑week can­dle chart (Bit­stamp) with 200-week MA. Source: TradingView

Fel­low trad­er Cred­i­ble Cryp­to was more opti­mistic on the short-term per­spec­tive, telling Twit­ter fol­low­ers that he did not fore­see spot price going much lower.

Zoom­ing out, Cryp­to Tony, like­wise, high­light­ed the “demand zone” that BTC/USD was now act­ing in.

“On the macro we can see a few things here. We broke down clear­ly from a dis­tri­b­u­tion range. We are now test­ing the first demand zone from this range. A reac­tion is expect­ed, but not a bot­tom yet in my opin­ion,” he tweet­ed:

“A wick down to $17k — $15k on the cards.”

Whales look to reduce BTC exposure

For the largest BTC hodlers, mean­while, signs of change were already vis­i­ble in on-chain data.

Relat­ed: That’s not hodling! Over 50% of Bit­coin address­es still in profit

Accord­ing to on-chain ana­lyt­ics firm Glassnode, on June 20 and 21, Bit­coin whales deposit­ed over 50,000 BTC to exchanges. This fol­lowed 58,000 BTC in inflows on a sin­gle day on June 13.

Over­all inflows from whale wal­lets thus remained ele­vat­ed on an intra­day basis, while still not match­ing the lev­els seen dur­ing some pre­vi­ous sell-offs.

On May 9, for exam­ple, the same group sent over 80,000 BTC to exchange accounts, the most since March 2020.

Bit­coin whale exchange deposits chart. Source: Glassnode

As Coin­tele­graph report­ed ear­li­er this week, whale buy­ers mean­while cre­at­ed a poten­tial major sup­port lev­el just above $19,000.

The views and opin­ions expressed here are sole­ly those of the author and do not nec­es­sar­i­ly reflect the views of Every invest­ment and trad­ing move involves risk, you should con­duct your own research when mak­ing a decision. 

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