The price of bitcoin broke the level of $20,000 lower this Saturday, June 18th, which also implies the breaking of a historical pattern for the cryptocurrency in the market. In the early hours of last Saturday, the cryptocurrency even fell to $18,700 for the first time since 2020.
So far this day, the drop in bitcoin is more than 6% compared to the opening of the daily candle this Saturday. However, this week, the cryptocurrency has dropped more than 27% of its market value.
“Bitcoin will never go below 20k again in my lifetime”
Bitcoin: “hold my drink” pic.twitter.com/15i98SjnPz
— Dr. Parik Patel, BA, CFA, ACCA Esq. (drpatel.eth) (@ParikPatelCFA) June 18, 2022
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The $20,000 mark was not just an important psychological mark in the market. It also had great historical value for bitcoin. That level was key because it was the all-time high set in the market cycle prior to the current one, in the 2017 bull run.
Until now, once the all-time high of a previous market cycle had been broken, that mark had never been lost to the downside. Bitcoin is, then, in unknown territory with this new drop in its price.
Furthermore, the cryptocurrency remains below the 200-week moving average, an average that has historically served as a very strong support. Although that average has been broken before.