$20,000 is being keenly watched while big buys from 2020 stand between spot price and the lowest Bitcoin bottom estimates.
Bitcoin (BTC) survived another night without breaking $20,000 on June 17 as $14,000 cemented itself as a likely bottom level.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Trader plans to go “all in” on BTC at $14,000
The pair remained skittish but within a narrow range as market participants waited to see how long $20,000 would hold.
The picture was complicated by increasing concerns over investment fund Three Arrows Capital and others, as rumors claimed the former was seeking a bailout after it failed to meet margin call obligations.
As Cointelegraph reported, contagion expressed itself across institutional investment products including the Grayscale Bitcoin Trust (GBTC).
Analyzing the “worst-case scenario,” meanwhile, popular analyst Venturefounder began to put more faith in $14,000 — an 80% drawdown from current $69,000 all-time highs.
“Worst case scenario, imo, $20k BTC is the new $30K,” one of two tweets on the topic stated.
“The speed of the $20k capitulation surprised me a little, thought it would have taken longer to happen. But knowing the macro narrative (stocks sell-off, QT taking away liquidity, huge players like 3ac dumping), it makes sense.”
A second post concluded:
“That being said, I hold my most bearish BTC downside target to be $14k, even if it goes lower, I don’t think it would stay lower for any meaningful period of time. I’m buying on the way down, but $14k = ALL IN Bitcoin for me, I will sell everything I own and put into BTC.”
Between current spot price and that target lay areas where whales had purchased significant amounts of BTC in the period immediately after the March 2020 COVID-19 market crash.
As on-chain monitoring resource Whalemap noted, these potential “bubbles” of support lay at $19,000, $16,000 and $14,000, respectively.
3 bubbles 3 supports pic.twitter.com/Gd94C3nq9n
— whalemap (@whale_map) June 16, 2022
As Cointelegraph reported, other BTC price bottom predictions run as low as $11,000.
DXY weakness could send Bitcoin to $23,000
On macro, modest gains for United States equities at the Wall Street open took a back seat to an unwelcome rebound in U.S. dollar strength.
The U.S. dollar index (DXY), having come off its latest two-decade highs, returned with a vengeance to offer no respite to risk assets on the day.
At the time of writing, DXY traded near 105 while continuing to rise, up from intraday lows of 103.5.
U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView
Nonetheless, popular trader Crypto Ed still expected the week’s highs to remained unchallenged and for DXY to head lower once again. This, he told Twitter followers, should allow BTC/USD another shot at $23,000.
— Ed_NL (@Crypto_Ed_NL) June 17, 2022
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