The global financial markets have been dealt a blow following the looming energy crisis in Europe. Russia announced it had shut down the Nord Stream 1 pipeline indefinitely, which has resulted in energy prices in Europe rising by 30%. The energy crisis has triggered panic in a financial market already battling rising inflation. Bitcoin has not been spared from this, as it has dropped to June 2022 lows.

Bitcoin could retest June lows

At the time of writing, Bitcoin was trading at $18,737, according to data from CoinGecko, after a 6.1% dip within 24 hours. The current bearish trend has affected the global crypto market cap, which has once again gone below $1 trillion.

The Relative Strength Index (RSI) indicator currently stands at 45, which indicates that bears are in control. Bitcoin’s price momentum is bearish, and the bears could continue if the selling pressure intensifies.

On the other hand, the Moving Average Convergence Divergence (MACD) places Bitcoin at the signal line. This could indicate that the volatility could be cooling down. During the past 24 hours, the price has ranged between $18K and $19K. Therefore, a trend continuation will depend on whether the bears or bulls take control of the market.

On the daily chart, Bitcoin is eliciting a bearish trend. The sharp decline from the $19K to the current $18K levels could spike selling activity. For the 18K levels to hold, buyers need to hold the market, after which growth to the $19,500 to $20,000 zone could be realized.

On June 19, Bitcoin dropped to around $17,700. The current volatility might not cool down until this level is realized again. If the $17,700 support level is tested, the overall outlook in the market will determine whether buyers or sellers will take control of the market. Plunging below these levels could result in dips towards $16,000. However, if traders buy Bitcoin, it could return to the $20,000 mark.

Bitcoin miner reserves are on a downtrend

Bitcoin runs on a proof-of-work consensus, and miners are tasked with securing the network. Bitcoin miners are important players in the Bitcoin network, and their behavior tends to influence the coin’s price movement. One of the behaviors that can be analyzed from miners is how they interact with their Bitcoin holdings.

Miners usually hold large amounts of coins. The Bitcoin Miner Reserve chart from CryptoQuant shows that miners are under intense pressure. With the price dropping to the lows of $18K, there is a high likelihood that miners will not hold on to their mined coins.

The action could trigger more bleeding as miners start selling more of the mined Bitcoin to pay for the operation costs during the past few months. The Miner Reserve chart shows miners have been dumping their mined coins in the market over the past month.

There is also a growing uncertainty on whether the declining Bitcoin prices will make it possible for Bitcoin miners to continue their operations. The selling pressure triggered by the miners could overwhelm the market as more coins flow into exchanges, pushing the prices even lower in the short term. Therefore, miner behavior is also an essential factor that could trigger price gains or losses.

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