Bitcoin not out of woods yet despite bounce above $20k- crypto analysts

Bitcoin’s slide this past week took the bellwether cryptocurrency to lows of $17,600, its lowest price since late 2020. But after wading through a weeklong bloodbath, Bitcoin slowed the rot and made a comeback to the $20,000 mark.

While BTC above $20k is a crucial move, crypto analysts warn that the bears might not be done yet.

BTC needs to establish support above $20k?

While the weekend bounce has BTC above the crucial $20k mark, analysts suggest a retreat to or beyond last week’s lows near $17,600 is still likely.

Chances of fresh losses remain amid broader market macro headwinds as well as the overall weakness in crypto sentiment. After UST’s dramatic collapse in May, key crypto headlines in June have been around Celsius, Three Arrows Capital and Babel Finance – stories that have pushed fear to extreme levels.

Popular crypto analyst Rekt Capital says BTC/USD has to reclaim support above the 200 week moving average to “enjoy bullish continuation.” If not, there’s likelihood of a ranged accumulation as it bottoms out below the 200-week MA.

Alex Krüger, a crypto trader and market analyst, sees any dips below $20k (and $1k for Ethereum) as buying opportunities. He notes that last week’s slump was largely driven by panic sellers, which might not be the case this week.

According to il Capo, the $20k-$21k is now the new resistance level – following the breakdown at $30k. If the downside pressures continue, the analyst sees prices falling to support around $16k.

BTC/USD was trading around $20,760, up 5.5% in the past 24 hours. The bounce is also reflected in the rest of the market, with major coins trading higher – Ethereum (up 9.7% to 1,155), BNB (4% up to $215), Cardano (up 8% to $0.50) and Solana (at 36.44, 12% higher).

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