Bitcoin (BTC) survived another night on June 17 without breaking above $20,000 as $14,000 consolidated itself as a possible bottom level.
Trader plans to ‘all-in’ on BTC at $14,000
BTC/USD fell to $20,220 on Bitstamp overnight before recovering to $1,200, data from Cointelegraph Markets Pro and TradingView show.
The pair remained tight but within a tight range as market participants waited to see how long $20,000 could hold.
The situation was complicated by growing concerns about investment fund Three Arrows Capital and others amid rumors that the former sought a bailout after failing to meet margin call obligations.
As Cointelegraph reported, the contagion manifested itself in institutional investment products including the Grayscale Bitcoin Trust (GBTC).
Meanwhile, in analyzing the “worst-case scenario,” the popular analyst Venturefounder began to believe more at $14,000 — an 80% retracement from its current all-time high of $69,000.
“Worst-case scenario, imo, $20k in BTC is the new $30k,” said one of two tweets on the topic.
“The speed of the $20,000 capitulation surprised me a bit, thinking it would take longer to happen. But knowing the macro narrative (stock sell-off, QT taking liquidity away, big players like 3ac dumping), it makes sense .”
The second post concluded:
“Having said that, I think my most bearish BTC downside target is $14,000, and even if it goes lower, I don’t think it will stay low for any meaningful period. I buy on the way down, but $14,000 = right It’s all bitcoin for me, I’ll sell everything I own and put in BTC.”
Between the current spot price and the target area for buying large amounts of BTC immediately after the March 2020 COVID-19 market crash.
As noted by on-chain monitoring resource Whalemap, these potential “bubbles” of support are $19,000, $16,000, and $14,000, respectively.
3 Bubble 3 Support pic.twitter.com/Gd94C3nq9n
— Whale Map (@whale_map) June 16, 2022
As Cointelegraph reported, other BTC price bottom predictions are as low as $11,000.
Weak DXY could take Bitcoin to $23,000
On the macro front, U.S. stocks edged higher at the open on Wall Street, making the dollar rally unwelcome.
Related: These 3 Indicators That The Bitcoin Price Plunge Isn’t Over
The U.S. dollar index (DXY) retreated from its most recent two-decade high and returned strongly on the day, with no respite for risk assets.
At the time of writing, the U.S. dollar index is trading around 105 while continuing to rise from an intraday low of 103.5.
Still, popular trader Crypto Ed still expects this week’s highs to be unchallenged and DXY to turn lower again. This should send BTC/USD up to $23,000 again, he told Twitter followers.
That was close, now $DXY is expected to head lower again which should push #BTC to 23k pic.twitter.com/6Mt8UNywpS
— Ed_NL (@Crypto_Ed_NL) June 17, 2022
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