If we look at the weekly chart it becomes obvious why 19k has such an effect even from 5 years ago! That was the old high in 2017 when the market was extremely bullish that any crypto made lots of money. Do you remember the boom days? The "Gold Rush Days" of BTC?
For the past couple of months we have been stuck at 19k. 19k is acting as support but like all supports, the more it is tested the weaker it becomes. Eventually it will fall through 19k and if it runs out of buyers it will fall down to the next support level. It will likely get support around 12k and if that doesn't hold, we're down to 8k.
The only thing that might change this is some external force that affects the currency.
I've been toying around with the idea "What will happen if the EU banks close?" (EU may collapse in 2023 due to high energy costs have already forced a lot of EU industries to shut down. This will cause loan defaults and banks to close down for a bank bail-in)
What effect will this have on Bitcoin? My first reaction would be it would send the price through the roof? But then I realized with the banks closed, people will need money to pay their bills so they will cash in their BTC to get currency because few people will accept crypto (as of yet). This will drive the price of BTC lower temporarily. When the public realizes they can't use credit cards, debits, checks, bank transfers, etc., they should move towards cryptos if the banks don't have their central bank digital currency available.
If you want to learn more of what happens during a bank bail-in, check out what happened to Cyprus a few years ago.
For the past couple of months we have been stuck at 19k. 19k is acting as support but like all supports, the more it is tested the weaker it becomes. Eventually it will fall through 19k and if it runs out of buyers it will fall down to the next support level. It will likely get support around 12k and if that doesn't hold, we're down to 8k.
The only thing that might change this is some external force that affects the currency.
I've been toying around with the idea "What will happen if the EU banks close?" (EU may collapse in 2023 due to high energy costs have already forced a lot of EU industries to shut down. This will cause loan defaults and banks to close down for a bank bail-in)
What effect will this have on Bitcoin? My first reaction would be it would send the price through the roof? But then I realized with the banks closed, people will need money to pay their bills so they will cash in their BTC to get currency because few people will accept crypto (as of yet). This will drive the price of BTC lower temporarily. When the public realizes they can't use credit cards, debits, checks, bank transfers, etc., they should move towards cryptos if the banks don't have their central bank digital currency available.
If you want to learn more of what happens during a bank bail-in, check out what happened to Cyprus a few years ago.
