Bitcoin (BTC) remained at a realization just below $22,000 on July 25 when Wall Street opened flat.
Bitcoin Surrenders More Key Levels
Data from Cryptooshala Markets Pro and trade view tracked BTC/USD as it consolidated after falling from $23,000 overnight.
The pair followed stocks in quiet trading ahead of the US Federal Reserve’s July 27 interest rate decision. Analysts had been expecting volatility for several days and while buying interest in bitcoin was strong below the spot price, things could still change.
There is no guarantee that any support will continue from Wednesday to Wednesday. #FEED announcement, for now #FireCharts shows a ladder #Bitcoin offers around these next levels of technical support. https://t.co/Ng2Rqc0Op7 pic.twitter.com/W6veJMS2YJ
— Material indicators (@MI_Algos) July 25, 2022
“There is a big week ahead for the markets,” said Umar Ashraf, founder of the trading tool TradeZella. forecast.
“A lot of big names are reporting earnings with the FOMC starting Tuesday, followed by Wednesday’s announcement. A big week doesn’t always mean the market needs to see action, it can be a period of time when the market is digesting information for the next move.”
As traders poised to react, Bitcoin became restless, struggling to hold any of its 200-week moving averages (MA), 50-day MA, or realized prices, which are $22,700, $22,200, and $21,850 respectively. .
The last of these, the price at which the average bitcoin last moved, was restored as support just a week before.
Comparing price action this year to previous bear market years, analyst Root warned that another extended drop below the trend line could be the next move.
— Root (@therationalroot) July 25, 2022
Meanwhile, taking a more upbeat outlook, PlanB, a maker of bitcoin price patterns, noted that the rate at which bitcoin bounced above its 200-week moving average this month may be at odds with underlying strength lacking in similar bearish phases.
“It usually takes a lot longer for BTC to bounce above the 200-week moving average after BTC falls below the strike price. But it has already happened,” he said. explained.
“Also, the 200-week moving average and the realized price have already touched (usually this also takes longer).”
Little fish digs up abandoned institutional coins
Meanwhile, the data showed the extent of supply migration from larger to smaller investors in recent months.
Will the Fed prevent BTC price from rising to $28,000? 5 things to know about bitcoin this week
In their latest study, the cryptanalytic company Arcane Research calculated the cumulative sale by institutional sources has been over 236,000 BTC since the explosion of Terra LUNA – now Terra Classic (LUNC) on May 12.
“The number 236,237 BTC comes from massive institutional explosions and other large known sell-offs seen during market stress over the past two months,” the post reads.
“This number does not take into account other natural capitulation and hedging that typically occurs during crypto bear markets.”
Meanwhile, data from another analytics platform Glassnode showed that organizations holding 1 BTC or less grew faster than ever in the total share of BTC supply.
— Bitcoin Documentation (@DocumentingBTC) July 25, 2022
The trend picked up sharply in 2022, according to data uploaded to Twitter by the popular Documenting Bitcoin account.
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Credit : cointelegraph.com