The sudden bearish sentiment is intensifying as BTC price action returns to a range not seen since late July.

Bitcoin (BTC) fell rapidly on Aug. 19 as the peak of a week’s range ended in disappointment for bulls.

Hourly candlestick chart BTC/USD (Bitstamp). Source: Trade View
New lows “just a matter of time”
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD’s 6.2% decline in a single hourly candle.

In response, traders were hoping that the recovery would allow consolidation above the current spot price level, which is below $22,000 at the time of writing.

“Well, hopefully it was a quest for liquidity, otherwise it’s over,” Crypto Chase said somberly to Twitter followers.

Crypto’s peer Il Capo, who has long predicted a return to lower levels, has come to terms with new lows being “only a matter of time.”

A consolidation below $22,500, he warned in his latest update, would be “very bearish.”

Meanwhile, prior to the drop, a Venturefounder analyst said that any price below $23,000 would be “a worthy buy over the long term,” adding that Bitcoin is unlikely to be past the bear market just yet.

He argued that the Relative Strength Index (RSI), which is still close to historical lows, indicates the level of BTC/USD being oversold.

However, there were signs of buying below key bear market support levels, including the 200-week moving average and key whale entry levels.

BTC/USD (Bitstamp) weekly candlestick chart with 200 week moving average. Source: Trade View
According to network analysis company CryptoQuant, the exchange outflow already amounted to 21,500 BTC in the first hours of August 19.

Chart of Bitcoin exchange outflows. Source: CryptoQuant
Ethereum regained August growth
As for altcoins, the impact of Bitcoin’s return to a three-week low has been predictably felt.

Related: Options data shows short-term bitcoin uptrend in jeopardy if BTC falls below $23,000

Ether (ETH), the largest altcoin by market cap, is down 5.2% at the time of writing and is trading around $1,750.

ETH/USD 1-day candlestick chart (Binance). Source: Trade View
Elsewhere, other major tokens lost over 11%, with Dogecoin (DOGE) being the worst performer in the top ten at 13.6%.

“Bearish bias for now unless $1790 is returned/flipped to support,” added Crypto Chase in a separate tweet about ETH.

Source: CoinTelegraph