BTC price drops 6 percent, as trader calls bitcoin extremely bearish below $22.5K

By: Michael Wilson

August 19, 2022 10:53 AM

As BTC price action returns to a range last seen in late July, a sudden pessimistic feeling takes hold.

On August 19, Bitcoin (BTC) experienced a sharp decline as the culmination of a week of sideways movement disappointed bulls.

BTC/USD 1-hour chart (Bitstamp). Source: TradingView 

Trading participants responded by hoping that a recovery would enable consolidation above the current spot price levels, which were below $22,000 at the time of writing.

A devastated Crypto Hunter told his Twitter followers, "Well, perhaps that was liquidity seeking, else it's over."

Fellow account Il Capo of Crypto accepted that fresh lows were "only a question of time" after long predicting a return to lower levels.

In his most recent update, he stated that consolidation below $22,500 would be "extremely bearish."

Analyst Venturefounder stated that any price below $23,000 would be a "good price to buy in the long run" prior to the decline and added that it was improbable that Bitcoin had already departed its bear market.

He claimed that the fact that the relative strength index (RSI) was still very close to all-time lows indicated how oversold BTC/USD was.

Despite this, buying signals began to emerge below crucial bear market support levels, such as the 200-week moving average and crucial whale entry levels.

BTC/USD 1-week candle chart (Bitstamp) with 200-week moving average. Source: TradingView

Data from on-chain analytics company CryptoQuant shows that during the first few hours of August 19, exchange outflows have reached 21,500 BTC.

Outflows on the Bitcoin exchange graph. Citation: CryptoQuant