Bitcoin Rapidly Declining to $22k or $20k Seems Probable, Says BTC Analyst

Summary:

• Bitcoin could beryllium gearing up for a accelerated driblet to $22k oregon $20k, wherever macro enactment lies.
• Bitcoin options information shows that traders are loading up connected hedges successful the lawsuit of different limb down.
• Bitcoin has been struggling to support its worth supra $30k.
• The play Bitcoin illustration further points to much weakness that could pb to a meltdown to the 200-week moving mean astir the $22k terms area.

Bitcoin (BTC) could acquisition a accelerated diminution to $22k or $20k. This is according to an investigation shared by fashionable BTC analyst, MagicPoopCannon, who besides explained that Bitcoin is presently trading beneath the 61.8% retracement level of the full bull market. Magic besides pointed retired that $22k to $20k was an country of macro enactment for Bitcoin.

He shared his investigation of the likelihood of a Bitcoin driblet to the levels mentioned supra done the pursuing statement and accompanying chart.

#BTC is falling beneath the 61.8% [retrace] of the full bull market, successful what whitethorn beryllium the opening of the adjacent large limb lower. I bash spot a method lawsuit for a accelerated diminution to $22,000 oregon $20,000, earlier caller enactment is found, if a limb down gains steam

Bitcoin is trading beneath the 61.8% retracement of the bull market. Source, @MagicPoopCannon connected Twitter

Bitcoin Options Data Suggests Investors are Anticipating Another Leg Down

Similarly, an analysis by the squad astatine Bloomberg concluded that Bitcoin options information suggests that investors are anticipating different limb down for BTC. According to their research, the put-to-call ratio of BTC has deed a one-year precocious of 0.72, meaning Bitcoin traders are loading up connected hedges successful the lawsuit of different dip to little levels.

Josh Olszewicz, caput of probe astatine Valkyrie Investments, further explained that the planetary financial macro environment was different crushed investors were bearish connected Bitcoin. He said:

[It] signals cynicism successful the markets with rising bearish sentiment…Given the macro concern globally, and the adjacent azygous risk-off commercialized presently dominating astir plus classes, traders person followed suit with their Bitcoin strategies.

Bitcoin’s Weekly Chart Confirms the Possibility of a Drop to the 200-week MA astatine Around $22k

Further consulting the play Bitcoin illustration below, it tin beryllium deduced that BTC is successful a wide downtrend and looks acceptable to retest the 200-week moving mean (green) successful the days ahead. The second moving mean besides coincides with 1 of Magic’s targets of $22k.