The sell-off on the cryptocurrency market pushed the price of the largest cryptocurrency below the $20k mark. Now, Bitcoin [BTC] returns back to the $21,000 range, providing some relief to the investors.
But the question remains, can the bulls keep the momentum going?
A potential rally in the works?
Different Bitcoin holders seem to have entered a capitulation phase. Many even fear the end of the cryptocurrency reign. Consider this, the “Bitcoin Dead” searches on Google touched an all-time high over the last weekend. Alex Kruger, a famed economist, in a 20 June tweet highlighted this stat.
Google searches for "bitcoin dead" hit all time highs over the weekend. pic.twitter.com/oDXNqGEeIL
— Alex Krüger (@krugermacro) June 20, 2022
Nonetheless, such rock-bottom sentiments tend to bring out a potential rally. On-chain data provider Santiment opined,:
“Bitcoin’s plummet to $17.7k this weekend brought out the most discussion related to the #1 market cap asset in 2022. We often see major price reversals correlate precisely with high social volume rates, and $BTC has jumped +15.8% since.”
Here’s a graphical representation- BTC reaching the $17.7k mark caused the largest amount of BTC discussion of the year.
As past bore the witness, the low and negative sentiment could inject a potential rally as whales tend to accumulate.
On-chain analytics resource Whalemap, meanwhile, highlighted the dip-buying by major investors at levels below the seminal $20,000. This could become a great short-term support for the flagship coin.
New whale level has formed over the weekend's dump.
The accumulation is quite large, >100k BTC, and happened on the 18th of June.
Prior to that, a large portion of Dec 2018 Bitcoins have moved from the previous 4k bottom… Could be OTC
Looks like a great short-term support pic.twitter.com/rJbV26ZifG
— whalemap (@whale_map) June 20, 2022
“Over the next years, investors will be rewarded for buying here. Yet, many still wait for $BTC to go even lower to buy. It’s like waiting for Summer to come, and finally it’s 33C outside but now we hope for 35C.”
The trader, additionally, described a $20,000 BTC price as a “gift” to buyers. But, the question remains, are they going to accept this reward? Especially after witnessing massive losses.
The aggregate market has realized over $7 billion in losses this week, with Long-term Holders (LTHs) contributing 178k BTC in additional sell-side.