Bitcoin price jumps 8% from critical support

Bitcoin (BTC) took pity on investors and bounced off critical support after dangerously close to $20,000, the high of the last cycle, on June 15.

Bitcoin price jumps 8% from critical support
1-hour candlestick chart of BTC/USD (Bitstamp). Source: NewsOfFinance

Few think that Bitcoin has bottomed out

Cointelegraph Markets Pro and NewsOfFinance According to data, the BTC/USD pair started to rise after seeing $20,079 on Bitstamp.

While the selling pressure stopped for a while, the pair skyrocketed to $21,700 with the opening bell of US stocks. Stock markets also started the day positive, with the S&P 500 gaining 1.4 percent and the Nasdaq Composite Index gaining 1.6 percent.

Market commentators think the minor rally is due to the Fed’s possible rate hike being already priced in. The Fed will make an announcement on interest rates in the coming hours.

Bloomberg Senior Commodity Strategist Mike McGlone thinks that of all asset classes, crypto has suffered the most from the inflationary environment. The strategist compares the performance of Bitcoin and altcoins with skyrocketing commodities, especially WTI crude oil. compared. Crude futures are currently trading at nearly double the 200-week moving average.

“Bitcoin, bonds and gold are consistently bottoming out, with oil booming like never before — Crude futures historically surpassing the 200-week average, a sufficient trigger for inflation to skyrocket, consumer sentiment to collapse, the Fed’s rate hikes to accelerate and the recession to continue.”

Bitcoin price jumps 8% from critical support
1-week candlestick chart showing the 200-day moving average of WTI crude oil futures. Source: NewsOfFinance

While price action has been subdued, many doubt that Bitcoin can hold onto the $20,000 band for a long time.

Popular investor Crypto Tony comments, “Loss selling in the crypto market has not started yet.” found.

“We’re close, but we haven’t seen it yet. Everyone was filled with optimism and that shouldn’t have happened.”

Analyst Rekt Capital also joined the investor and said there was no volume in line with the latest selling pressure. added.

“Of course the sellers will run out at some point. Watch for high volume bars on the sell side. These bars usually signal a bottom after continuous selling and are a harbinger of a trend change.”

Bitcoin’s own 200-week moving average is currently located at $22,400. This level could be the focus for weeks or even months to come, Rekt Capital says. thinks.

The damage done is still not enough

The data reveal the extent of selling pressure in the short term.

On-chain analytics company Glassnode to the data According to the data, the weekly loss value reached 2.6 percent of the realized market value of Bitcoin.

Net Unrealized Profit/Loss (NUPL) of Bitcoin that covers coins that are not physically sold indicatorreveals that a significant portion of the accumulated coins are at a loss. This is the first time such a rate has been encountered at NUPL since March 2020.

Falling below zero, the indicator is placed in the red area, which has historically been a “sell-at-loss” zone.

Bitcoin price jumps 8% from critical support
Bitcoin NUPL indicator and BTC/USD chart. Source: NewsOfFinance

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