Bitcoin to Counter Major Trend, Data Shows, as BTC Price Hits $20,000

Bitcoin to Counter Major Trend, Data Shows, as BTC Price Hits $20,000

Bitcoin (BTC) consolidated its rise on July 16 after a Wall Street trading weekend with modest gains for US stocks.

1-hour candlestick chart of the BTC/USD pair (Bitstamp). Source: Trade View

Can bitcoin bulls recover the 200-week moving average?

Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair was trading between $20,500 and $21,000 over the weekend.

So the pair preserved most of its rally from the week’s lows, after the surprise US inflation data prompted weakness in risk assets.

Thanks to after-hours trading, the classic case of a breakout and a false start of reduced liquidity could accompany bitcoin through the weekly close.

Order book data from Binance, the world’s largest volume exchange, showed that key resistance is around the $22,000 mark should the bulls try to push the market higher.

Regarding the relevant resource indicator track, however, there was a distinct possibility that bitcoin could even challenge its 200-week moving average (week moving averageWMA), a key bearish market trendline was lost as support more than a month ago.

#BTC is currently looking for a retest of the 200 WMA, ~$22.6k. #FireCharts — Content Indicators (@MI_Algos) July 15, 2022

“It’s easy to go bullish on BTC on a green day & bearish on a red day,” he said added popular trader and analyst Rekt Capital in other comments.

“But BTC is still hovering between $19,000 and $22,000. This will continue until one of these levels is broken. Movements within the range are not large enough to dictate emotional changes.”

As Cointelegraph reported, that sentiment reached an unimaginable high this week as cryptocurrency markets ended their longest period in a state of “extreme fear” according to the report. Crypto & Saint Fear Index.

Miners are affected by the crisis

By monitoring the behavior of miners, analyzes are performed from the analytics platform on a chain CryptoQuant has sounded the alarm about a possible liquidation.

Also read: Bitcoin Miners Sell Stock and ASIC Prices Fall – What’s Next for the Industry?

14,000 BTC were transferred from miners’ wallets on July 15, Binh Dang revealed, and while it doesn’t specifically indicate a sale, the phenomenon is worth watching.

“At this point, we cannot be sure if this distribution is positive or negative, so we should be careful to watch the coming days,” he summarized in one of the market updates. Quick quick from CryptoQuant.

On the other hand, a new indicator, the model Gravity Energycovering bitcoin production costs, showed that miners were likely able to pay relatively small amounts for energy to mine profitably at current BTC spot prices.

Bitcoin Energy Gravity the maximum price in USD ($/kWh) at which modern mining devices are willing to buy electricity to make a profit; ie electricity equilibrium rate,” explained the creator of the model, BlockWare analyst Joe Burnett, in a post on Twitter.

“From this maximum bid price, it is possible to better understand when the price of bitcoin is overexploited and when the price may approach the bottom. »

Bitcoin Energy Gravity Pattern. Source: Joe Burnett/Twitter

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of All investment and business transactions involve risk. You should do your own research before making a decision.

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Bitcoin derivatives data suggests bears at BTC pin below $21,000 on Friday options expiration

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