Bitcoin price dumps some more as bulls push for lower prices
|- Bitcoin price is back in the buy zone despite its recent drop to $19,620.
- BTC price may stretch losses to tag June lows if support at $19,600 crumbles.
- Bitcoin price flaunts turnaround move above $20,000, but whales must keep accumulating.
Bitcoin price carried on last week’s losing streak amid fears of further losses. Investors foreshadow another crypto crash with the upcoming major event – the Ethereum Merge. The market is conflicted, with some participants believing the Merge has already been factored in. In contrast, others augur a sell-the-news scenario with immense losses.
Meanwhile, Bitcoin price exchanges hands roughly at $19,725 during the Asian trading session on Monday. Support at $19,600 was upheld, preventing further action to June lows around $18,000.
Read more: JUST IN: Ethereum surpassed 1.7 billion transactions, what’s next for ETH?
Key fundamentals supporting a possible Bitcoin price recovery
Large volume investors, otherwise called whales, continue sinking money into the largest cryptocurrency – the recent downtrend notwithstanding. According to Santiment’s Supply Distribution on-chain metric, addresses holding between 10,000 and 100,000 BTC stand at 92, up from 79 in early March.
A turnaround move is expected to take shape in the coming days – maybe weeks, as long as whales keep filling their bags. Ideally, the tail force behind Bitcoin price soars with rising demand and is usually a bullish signal.
Bitcoin Supply Distribution metric
The market value realized value (MVRV) reveals that the bellwether cryptocurrency is back in a buy zone. As observed in the chart below, an MVRV reading of -7.78% infers that Bitcoin price is significantly undervalued. Bulls may push for much lower prices, after which they will push for the ultimate swing – not only above $20,000 but strong enough to start a bull run.
Bitcoin MVRV on-chain metric
Bitcoin price could soon be on a pathway to recovery, but first, support at $19,600 must hold. If this buyer congestion weakens, investors should begin to acclimate to declines extending below $19,000, especially now that June lows are in sight.
On the brighter side, the Stochastic oscillator is reaching out for a bullish divergence as Bitcoin price stabilizes price movement for a possible run-up beyond $20,000. This index has to validate a break above a major falling trend line, as seen below, for Bitcoin price to make a lasting comeback.
BTC/USD four-hour chart
It is worth zeroing in on possible hurdles Bitcoin price may encounter in its quest to climb above $20,000, for instance, the solid seller congestion areas at $20,400, $21,800 and $20,000. Traders who may not wish to hold on for the ultimate push into a bull run may consider exiting from their positions at mentioned levels. Nevertheless, the most bullish have the choice to hold on to $26,000 and $28,000, respectively.
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