BTC price recovers to 3-day highs as new whale support forms at $19.2K

A screenshot of a video game Bitcoin

BTC price recovers to 3-day highs as new whale support forms at $19.2K

At least some were buying the dip below $20,000, data shows, while PlanB fields fresh criticism of his stock-to-flow BTC price models.

BTC price recovers to 3-day highs as new whale support forms at $19.2K

Bitcoin (BTC) held steady at the June 20 Wall Street open as nervous traders waited for a short-term trend decision.

BTC price recovers to 3-day highs as new whale support forms at $19.2K

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

Trader flags Bitcoin “macro bottoming period”

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD climbing to just shy of $21,000 at the time of writing, a three-day high.

The weekend had spooked the majority of the market and liquidated speculators with a trip to $17,600, marking Bitcoin’s lowest levels since November 2020.

Now, with United States equities cool at the start of the week, comparative calm characterized the largest cryptocurrency.

“Nice reaction off of the bottom of our 16K–20K demand zone,” popular trading account Credible Crypto commented on the weekend’s price action.

The idea of focusing on HTF, or higher timeframe price structures was shared by various commentators as the week began.

“BTC is in a macro bottoming period for this cycle,” fellow trader and analyst Rekt Capital continued.

PlanB: Bitcoin is simply “oversold”

Bitcoin heading below its prior halving cycle all-time high, meanwhile, increased pressure on the popular stock-to-flow (S2F) BTC price models — and criticism of them.

As market analyst Zack Voell openly called S2F a “scam” on social media, quant analyst PlanB, its creator, maintained that the theory behind it remained sound.

“Most indicators (S2F, RSI, 200WMA, Realized, etc.) are at extreme levels,” he explained in part of a Twitter post on June 18.

As PlanB noted, Bitcoin’s relative strength index, or RSI, was at its lowest level in history over the weekend. A classic overbought vs. oversold indicator, RSI essentially suggests that BTC/USD is trading much lower than its fundamentals warrant, based on historical context.

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

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

Rate article
( No ratings yet )
FORECRYPTO