30.06.202210:55 Forex Analysis & Reviews: Bitcoin declines due to growing sellers' pressure: what's next?

Bitcoin has been holding the $20,000 mark. Therefore, the market situation has stabilized. However, Bitcoin has been gradually declining over the past four days. On June 30, the asset made a bearish breakthrough of the $20,000 level. This situation happened amid sellers' active moves. Moreover, they again resumed the pressure on the price. Increased pressure on Bitcoin may indicate that the bears now have the necessary volumes and targets. This means that major players began to sell off BTC again.

The price drop below $20,000 triggered a decrease in Bitcoin's total volumes. The figure fell below the 50% mark, which is typical for the final stage of the bear market. However, it should be noted the average BTC price drops to 40% before it starts to recover. This fact indicates that Bitcoin is about to retest $17,700 or to renew the local bottom.

As of June 30, the asset is trading at its 2018 high. In the current situation, this argument is an important psychological support zone that keeps investors calm. However, there are technical and fundamental reasons to believe that BTC will break through this mark.

Technical indicators point to the final stage of the local upward momentum which has held the price above $20,000. The stochastic oscillator carries out a bearish crossover, while the relative strength index reaches the boundary of the bullish zone. In other words, the volume of seller's pressure has increased significantly and currently there is a stage of a downward momentum. The MACD indicator has also ended its upward movement. However, it continues to move flat. This suggests that the bearish momentum has not been implemented yet.

The fundamental news background was also negative. According to SkyNews, a court in the British Virgin Islands has ordered the liquidation of Three Arrows Capital. Although the data is not confirmed, its impact on the crypto market is already visible. The market is overwhelmed with negative sentiment. Therefore, another investment outflow is possible. The mining industry was also hurt badly. A hurricane in the US knocked out more than 70% of Marathon's mining capacity. The company's management said that work on less capacity would be resumed no earlier than the first week of July. This news did not affect BTC hashrate. However, another sell-off from miners is most likely.

Moreover, Jerome Powell made a significant statement about the future of the global economy. After the turmoil of the first half of 2022 and the ongoing effects of the coronavirus pandemic, the Fed Chair said that recession was coming. In the current situation, it is clear that Bitcoin will not benefit from an economic recession. However, as of June 30, it is obvious that the correlation with stock indices will have a negative impact on BTC price movement.

Taking into account new negative fundamental and technical factors, there is no doubt that Bitcoin is about to retest or renew the local bottom. The main stage of the fall will take place in case the cryptocurrency breaks through the 2018 high and works out to a range of $17,700-$18,500. Another stage of BTC sales and an inflow of cryptocurrency volumes to exchanges is likely in the near future. Most technical indicators highlight that the current drop will be the final one within the bear market.