Bitcoin’s inability to gain momentum and approach the $20,000 mark has analysts worried about a near-term decline.
Today, June 29, the largest cryptocurrency slipped into the $19,000 range, trading close to $20000. The MVIS CryptoCompare Digital Assets 100 Index, which measures the top 100 tokens, fell 2.1 percent.
Most short-term technical indicators point to a high likelihood of a “taper-style decline,” noted Fundstrat technical strategist Mark Newton.
The first warning should come with a daily close below $20,491, and a move below $19,744 could lead to a retest of the $17,592 level. Below $1,592 lies the path to $12,500-13,000, which I expect would be a great place for medium-term buyers.
Bitcoin has been falling along with risky assets in recent months, yet the crypto industry should be happy that prices have stabilized, “given the flood of negative headlines over the past couple of months,” says Oanda senior market analyst Craig Erlam.
My fear is that there will be deterioration in the coming weeks…given bitcoin’s inability to form any support above 20,000.
However, Fundstrat believes any drop could create a good buying opportunity.