Bitcoin (BTC) tumbled rapidly on August 19 as the peak of a week’s sideways movement ended in disappointment for the bulls.
BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView
New bottoms ‘only a matter of time’
Following data from Cointelegraph Markets Pro and TradingView BTC/USD is down 6.2% in one hourly candle.
In response, traders were hoping that a bounce would allow a consolidation above the current spot price levels, which were below $22,000 at the time of writing.
Crypto Chase told Twitter followers: “Okay, I hope this is the quest for liquidity, or else it’s over.”
Crypto’s colleague Il Capo’s account, who had long predicted a return to lower levels, quit fresh lows being “just a matter of time”.
In his latest update, he warned that consolidation below $22,500 would be “too bearish.”
Ahead of the dip, meanwhile, analyst Venturefounder said that any price below $23,000 would be “an appropriate price to buy in the long run,” adding that it is unlikely that Bitcoin has exited its bear market just yet.
He said the Relative Strength Index (RSI) which remains near all-time lows is speaking to the extent that BTC/USD is oversold.
However, there were signs of buying emerging below key bear market support levels including the 200-week moving average and key whale entry levels.
BTC/USD 1-week candlestick chart (Bitstamp) with a 200-week moving average. Source: TradingView
According to data from on-chain analytics firm CryptoQuant, the total exchange flows in the first few hours of August 19th have already reached 21,500 BTC.
Bitcoin exchange flow chart. Source: CryptoQuant
Ether regains August gains
On altcoins, the detrimental effect of Bitcoin’s return to three-week lows has been greatly felt.
Related: Options Data Shows Bitcoin’s Short-Term Uptrend Is At Risk If BTC Drops Below $23,000
Ether (ETH), the largest altcoin by market cap, is down 5.2% on the same day at the time of writing, trading near $1,750.
ETH/USD (Binance) 1 day candle chart. Source: TradingView
Elsewhere, other major coins lost over 11%, with Dogecoin (DOGE) the worst performer in the top ten, down 13.6%.
“Bear bias now unless $1,790 is recovered/inverted to back it up,” Crypto Chase added on ETH in a separate tweet.
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