Bitcoin rips below $20,000 and opens a fresh can with more losses at hand

Bitcoin (BTC) price has said its goodbyes at $20,000 after a few very choppy trading days. With $20,000 in the middle of the range still at the end of August, it was at the start of September that the beloved psychological level started being mentioned on the topside of the intraday price action. Slowly but surely, Bitcoin price slipped below it, and after yesterday it is time to say goodbye to $20,000 for now, saddling up bulls with massive losses and negative pnl’s to come.

Bitcoin revisits 2020 all over again

Bitcoin price sees bullish support breaking down as price action tanks 5% into the close of the US session. Bitcoin bulls seem unable to withstand the market turmoil as the European energy crunch pushes equities globally back to the lows of 2022, and dollar strength regains power after a brief pause. With an opening below $19,036 and no real test to the upside on that level, $20,000 looks far off now.

BTC price by this move is entering a new area with more downside. There are not many handles to go on, as only one near $18,000 falls in line with the monthly S1. That level is likely to be tested for support, with the base for this new trading area coming in near $16,020, which falls in line with the low of November 06, 2020, and encompasses around a 16% decline.

BTC/USD Daily chart

Alternatively, a turnaround could still be possible if bulls buy the dip and every price in sight below $19,036. A quick spin around could result in price action back trading above that level and looking to reclaim $20,000. That would make sense as the Relative Strength Index is trading on the oversold boundary and is therefore possibly poised to bounce off and move higher.