Bitcoin Loses Aggregate 56% In Second Quarter

Bitcoin price has finished the first half of 2022 and things prospects do not seem good. With record negative returns, BTC is likely to continue falling heading lower, particularly if one particular support level happens to be breached.

Bitcoin price crashed by 56% in the second quarter, making it the highest negative Q2 return in the 11 years of the blockchain’s existence. Regardless, the last few weeks have seen price action forming in a tight range, below the 200-week Simple Moving Average (SMA) at roughly $22,500.

Bitcoin price’s response to the major MA above it will indicate the strength of the bullish contingent, whilst the $19,065 support level will reveal bears’ intentions.

Assuming Bitcoin price manages to overcome the 200-week SMA – coinciding roughly with the $23,480 horizontal resistance level – and flips it into a support floor, it will indicate that the buyers are in control. This move will also reveal that a recovery rally is in play.

Such a situation will suggest that BTC is likely to continue its ascent to the next stiff hurdle at $29,563. This is where things get complicated for the big crypto. A decisive move above the aforementioned barrier will open the path for Bitcoin price to reach the 2022’s highest traded volume point of control (POC) at $38,990.

However, overall the bearish trend is still dominant and only a weekly candlestick close above $52,000 will create a higher high and confirm a long-term reversal.

Passively supporting this bullish outlook is but only one chain metric – Supply on Exchanges. This index tracks the number of BTC held on exchanges, which has dropped from 1.94 million to 1.8 million over the last two weeks.