Bitcoin (BTC) Closes Below 200-WMA for the Third Consecutive Week, Time to Be Cautious?
The world’s largest cryptocurrency Bitcoin (BTC) has as soon as once more come below promoting strain and is at present buying and selling 2.15% down at a worth of $20,686 with a market cap of $394 billion.
That is for the very first time that Bitcoin has shaped a 3rd consecutive weekly candle beneath its 200-Week Shifting Common.
Final week, Bitcoin witnessed some buy-side volumes pulling the crypto to $22,000. In style market analyst Rekt Capital attracts an analogy to the 2018 bear market. The analyst writes:
Final week, BTC printed related buy-side quantity to the 2018 Bear Market Backside on the 200-week MA Through the formation of the 2018 backside nevertheless, that purchaser quantity preceded further -20% draw back If $BTC have been to drop an additional -20% quickly, worth would attain ~$16400.
Will Bitcoin DownTrend Proceed Additional?
The latest Bitcoin worth correction comes on the heels of heavy offloading carried out by Bitcoin miners. As per banking large JPMorgan, these gross sales may proceed to place strain on Bitcoin. In a word to shoppers, the JPMorgan strategists said:
“Offloading of Bitcoins by miners, to be able to meet ongoing prices or to delever, might proceed into Q3 if their profitability fails to enhance. The offloading has seemingly already weighed on costs in Might and June, although there’s a danger that this strain might proceed.”
The price of Bitcoin mining as of date might range relying on the dimensions of Bitcoin manufacturing. For a big mining firm, the BTC manufacturing prices stand someplace round $8,000.
Additionally, on-chain knowledge supplier Glassnode explains that the 2020 bear market has been the worst on file. In its report, Glassnode notes: “Spot costs are at present buying and selling at an 11.3% low cost to the realized worth, signifying that the common market participant is now underwater on their place”.
Through the Bitcoin worth crash earlier this month, buyers locked a lack of -$4.234B in a single day, an enormous 22.5% greater than its earlier file of $3.457B set in mid-2021.
