Bitcoin has support at $23K, but analysts warn of a dire drop to $8K as global debt unwinds
Bitcoin's month-long (BTC) choppy price action came to an end on June 13 after a deep market sell-off pressed the top cryptocurrency under the $29,000 support. The move took place as equities markets also sold-off sharply, hitting their lowest levels of the year.
Data from Cointelegraph Markets Pro and TradingView shows that the Bitcoin sell-off began late in the day on June 12 and escalated into midday on June 13 when BTC hit a low of $22,592.
Here’s a look at what several market analysts are saying about Bitcoin's move lower and whether this is the final capitulation event before the long-awaited price bottom.
Previous instances of bear market capitulation have seen a solid level of support at Bitcoin’s 200-week moving average as shown in the following chart posted by market analyst and pseudonymous Twitter user Rekt Capital.
Based on the trend from the last two cycles, Rekt Capital suggested that it's possible that BTC could see a “macro double bottom at the 200-week moving average” moving forward if the price action plays out in a similar fashion.
Rekt Capital said,
Insight into where Bitcoin could potentially be headed should it continue to break below the established support levels was provided by data from Whalemap, who posted the following chart highlighting the previously established support levels that could now flip to resistance.
Whalemap said,
Related: Bitcoin derivatives data shows no ‘bottom’ in sight as traders avoid leveraged long positions
According to Francis Hunt, a market analyst at The Market Sniper, Bitcoin price could drop to as low at $8,000 before hitting a real bottom.
Hunt said,
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