Bitcoin (BTC) consolidated higher on July 16, after Wall Street’s trading week ended with modest gains for US stocks.
Can Bitcoin Bulls Regain 200 Week Moving Average?
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair hovering between $20,500 and $21,000 over the weekend.
A) Yes, the pair retained most of its rally from the week’s lows, which came on the back of US inflation data and led to weakness in risk assets.
Now, after-hours trading means the classic low-liquidity breakout and false breakout scenario could accompany Bitcoin on the weekly close.
Order book data from Binance, the world’s largest exchange by volume, showed key resistance around the $22,000 mark should the bulls attempt to push the market higher.
However, by tracking the indicators at Material Indicators, there was a distinct possibility that bitcoin could even challenge its 200-week moving average (WMA), a key bear market trend line that was lost to support over a year ago. month.
#BTC is looking for another retest of the 200 WMA, currently ~$22.6k. #FireCharts pic.twitter.com/rRvbI8cPl2
— Material Indicators (@MI_Algos) July 15, 2022
BTC is looking for another retest of the 200 WMA, currently $22.6K.
“It’s easy to be bullish on BTC on a green day and bearish on a red day,” added popular trader and analyst Rekt Capital in separate comments.
“But $BTC is still hovering between $19,000-$22,000. This will continue until any of these levels are broken. Ranged moves are not substantial enough to dictate changes in sentiment.”
As Cointelegraph reported, that sentiment hit an unenviable record high this week, as Cryptocurrency markets have reached their longest period in a state of “extreme fear” according to the Cryptocurrency Fear and Greed Index.
The miners feel the prick
Observing the behavior of the miners, an analyst from the on-chain analysis platform CryptoQuant sounded the alarm about a possible sale.
On July 15, 14,000 BTC was transferred from miners’ wallets, Binh Dang demonstrated, and while not a specific indication of a sale, the phenomenon is worth following.
“Right now, we can’t be sure if this distribution is going to be positive or negative, so we have to keep an eye on the next few days.”summarized in one of CryptoQuant’s Quicktake market updates.
On the other hand, a new indicator, the Energy Gravity Model, which covers the production costs of Bitcoin, showed that miners were likely able to pay comparatively low amounts for energy to mine profitably at current BTC spot prices.
“Bitcoin’s energy gravity is the maximum price in dollars ($/kWh) at which modern mining equipment is willing to buy electricity to make a profit, i.e. the equilibrium electricity rate,” the model’s creator explained, BlockWare analyst Joe Burnett, in a twitter thread.
“From this maximum bid price, it is possible to gain a better understanding of when the price of Bitcoin is overextended and when the price may be bottoming out.”
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
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