Bitcoin Faces Extreme Selling Pressure, Why BTC Is Poised for a Major Breakdown Further?

Bitcoin Faces Extreme Selling Pressure, Why BTC Is Poised for a Major Breakdown Further?

A Bitcoin whale address has moved 5,000 BTC worth $100 million to Kraken Exchange. This is the first time this address has been active in nine years. The news comes when the world's largest cryptocurrency trades under $20,000.

After last week's unemployment report in the U.S., Bitcoin continued to stay under pressure and is exchanging hands at $19,887 with a market cap of $380 billion. Bitcoin continues to trade under $20,000 for the ninth consecutive day but holds above its then-record peak from December 2017. The high from December 2017 could act as crucial support for Bitcoin in the future.

The Federal Reserve has been burning money like it's going out of style (quantitative tightening) to restore credibility for the US dollar, which poses significant challenges against all cryptocurrencies – including Bitcoin.

Bitcoin Lightning Capacity Hit New ATH

Last week, Bitcoin's Lightning Network hit a new high, with almost 5,000 BTCs being processed at once. With the Lightning Network, Bitcoin transactions can be made faster and cheaper. The Lightning Network is making strides in the business world, with companies like MicroStrategy working to onboard a large number of users.

Saylor's speech at the Baltic Honeybadger conference was met with rave reviews. He called Lightning "the most important thing going on in this world of technology," and people loved it. The company announced that it would roll out Lightning to a hundred thousand employees daily. According to Saylor, it would be possible to open 10 million Lightning wallets overnight.

BTC Price Remains in a Range

Bitcoin Price Chart | Source: <a href="">TradingView </a>
Bitcoin Price Chart | Source: TradingView 

The bitcoin price continued to trade in a narrow range below the $20,500 and $25,550 resistance levels. However, Bitcoin refused to give up its $20,500 resistance zone.

Bulls were active above the $19,500 support zone while bears tested below it. The price of Bitcoin is climbing higher in the range, and it recently hit a low near $19,600. The price action in the last few hours has been extremely positive, with a minor bump above $19,750.

The price is slowly climbing above the 23.6% Fib retracement level of the recent decline from the $20,397 swing high to 19600 low – this could be a sign that an upward trend might continue. Bitcoin's price has fallen below $20,000 and is trading near an important psychological level.

BTC is trading near an important resistance level at $19,900 and the 100 hourly simple moving average. The next major resistance level is near the $20,000 mark. The price is near the 50% Fib retracement level of the recent decline from a $20,397 swing high to a 19,000 low.

The price will likely move higher soon – watch for signs that it may reach $20,500. Any more gains and the price might steadily move towards $21,200.

Disclaimer: The author's comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)

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