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Breaking News: Forfeited Bitcoin Linked To Samourai Case Not Sold, Confirms White House Crypto Advisor

Why The Bitcoin Price May Be Ready To Return To $20,000

Reynaldo Marquez
Reynaldo Marquez
Last Updated: June 11, 2024 2:27 pm
3 mins read
Bitcoin price Crypto Quant Data Hints An Imminent Bitcoin Price Rally, Will It Be Strong?

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The Bitcoin price managed to close yesterday’s daily candle above critical support, giving bulls a fighting chance to prevent further downside. However, today’s trading session has favored the bears, with BTC moving below the $19,000 area. 

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At the time of writing, Bitcoin stands at $18,900, with a 1% loss in 24 hours and a 2.4% loss in one week. Other cryptocurrencies in the crypto top 10 by market cap follow a similar trend except for Cardano and Solana. These cryptocurrencies are recording heavy losses across the board. 

Bitcoin price BTC BTCUSDT
BTC’s price moving sideways on the 4-hour chart. Source: BTCUSDT Tradingview

Bitcoin Price Takes Downside Liquidity

Last week, the Bitcoin price negatively reacted to the September Consumer Price Index (CPI) print published by the U.S. government. This metric is one of the benchmarks for inflation, and its September print hinted at higher levels. 

In turn, the U.S. Federal Reserve (Fed) will tighten the monetary conditions of global markets. This policy will continue to cap any bullish momentum for Bitcoin and risk-on assets, including those in legacy markets. 

This reaction to higher inflation, and a hawkish Fed, led the Bitcoin price to revisit its yearly lows near $17,600 as the September CPI print was published. The crash was short-lived as BTC rebounded to the high area of $19,000s. 

During the flash crash, many traders opened long positions while BTC rebounded. These traders expected a higher move, and their leverage positions left a lot of liquidity to the downside. According to analyst Justin Bennett, the Bitcoin price is taking that liquidity before resuming its bullish momentum. 

Bennett pointed out that BTC is moving in a tight range between $18,600 and around $19,800. The cryptocurrency might return to those levels before attempting another break of critical resistance near the $20,000 area. The analyst said the following while sharing the chart below: 

This has been my plan for $BTC all week. It was a combination of last Thursday’s long lower wick getting partially filled + the liquidity gap at mid $18k + channel support.

Bitcoin price BTC BTCUSDT Chart 2
BTC’s price taking liquidity at $18,600 and moving into $19,800. Source: Justin Bennett via Twitter

Bitcoin Shows Signs Of Capitulation

At the time of writing, the Bitcoin price appears to follow this trajectory. The cryptocurrency is back at its range and could be aiming for the top of the channel.

On higher timeframes, Bennett said that while $18,700 holds on the daily chart, Bitcoin might be gathering momentum to push into the central area in the $20,000 region before making a fresh leg lower. 

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Data from research firm Santiment indicates that Bitcoin is showing signs of capitulation. Many believe that over the past months, BTC holders capitulated en masse, making this long period of consolidation a painful step in gearing up the next move to the upside. 

? Capitulation signs have been popping up Friday, including transactions from addresses trading out their assets while at a loss. #Bitcoin is seeing its lowest ratio of loss vs. profit transactions in 4.5 months, and #Ethereum is seeing historically lows. https://t.co/hbytGlCBJ7 pic.twitter.com/tsJcgqWyBh

— Santiment (@santimentfeed) October 21, 2022 

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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