Bitcoin price dumps some more as bulls push for lower prices

Bitcoin price carried on last week’s losing streak amid fears of further losses. Investors foreshadow another crypto crash with the upcoming major event – the Ethereum Merge. The market is conflicted, with some participants believing the Merge has already been factored in. In contrast, others augur a sell-the-news scenario with immense losses.

Meanwhile, Bitcoin price exchanges hands roughly at $19,725 during the Asian trading session on Monday. Support at $19,600 was upheld, preventing further action to June lows around $18,000.

Read more: JUST IN: Ethereum surpassed 1.7 billion transactions, what’s next for ETH?

Key fundamentals supporting a possible Bitcoin price recovery

Large volume investors, otherwise called whales, continue sinking money into the largest cryptocurrency – the recent downtrend notwithstanding. According to Santiment’s Supply Distribution on-chain metric, addresses holding between 10,000 and 100,000 BTC stand at 92, up from 79 in early March.

A turnaround move is expected to take shape in the coming days – maybe weeks, as long as whales keep filling their bags. Ideally, the tail force behind Bitcoin price soars with rising demand and is usually a bullish signal.

 

Bitcoin Supply Distribution metric

The market value realized value (MVRV) reveals that the bellwether cryptocurrency is back in a buy zone. As observed in the chart below, an MVRV reading of -7.78% infers that Bitcoin price is significantly undervalued. Bulls may push for much lower prices, after which they will push for the ultimate swing – not only above $20,000 but strong enough to start a bull run.

 

Bitcoin MVRV on-chain metric

Bitcoin price could soon be on a pathway to recovery, but first, support at $19,600 must hold. If this buyer congestion weakens, investors should begin to acclimate to declines extending below $19,000, especially now that June lows are in sight.

On the brighter side, the Stochastic oscillator is reaching out for a bullish divergence as Bitcoin price stabilizes price movement for a possible run-up beyond $20,000. This index has to validate a break above a major falling trend line, as seen below, for Bitcoin price to make a lasting comeback.

BTC/USD four-hour chart

It is worth zeroing in on possible hurdles Bitcoin price may encounter in its quest to climb above $20,000, for instance, the solid seller congestion areas at $20,400, $21,800 and $20,000. Traders who may not wish to hold on for the ultimate push into a bull run may consider exiting from their positions at mentioned levels. Nevertheless, the most bullish have the choice to hold on to $26,000 and $28,000, respectively.