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 beneath promoting strain and is presently buying and selling 2.15% down at a worth of $20,686 with a market cap of $394 billion.

    This is for the very first time that Bitcoin has fashioned a 3rd consecutive weekly candle beneath its 200-Week Moving Average.

    Courtesy: Trading View

    Last week, Bitcoin witnessed some buy-side volumes pulling the crypto to $22,000. Popular market analyst Rekt Capital attracts an analogy to the 2018 bear market. The analyst writes:

    Last week, BTC printed comparable buy-side quantity to the 2018 Bear Market Bottom at the 200-week MA During the formation of the 2018 backside nonetheless, that purchaser quantity preceded further -20% draw back If $BTC have been to drop an additional -20% quickly, worth would attain ~$16400.

    Courtesy: Trading View

    Will Bitcoin DownTrend Continue Further?

    The current Bitcoin worth correction comes on the heels of heavy offloading performed by Bitcoin miners. As per banking big JPMorgan, these gross sales would possibly proceed to put strain on Bitcoin. In a word to purchasers, the JPMorgan strategists said:

    “Offloading of Bitcoins by miners, in order to meet ongoing costs or to delever, could continue into Q3 if their profitability fails to improve. The offloading has likely already weighed on prices in May and June, though there is a risk that this pressure could continue.”

    The value of Bitcoin mining as of date may differ relying on the dimension of Bitcoin manufacturing. For a big mining firm, the BTC manufacturing prices stand someplace round $8,000.

    Also, on-chain knowledge supplier Glassnode explains that the 2020 bear market has been the worst on report. In its report, Glassnode notes: “Spot prices are currently trading at an 11.3% discount to the realized price, signifying that the average market participant is now underwater on their position”.

    During 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 report of $3.457B set in mid-2021.

    Bhushan is a FinTech fanatic and holds a great aptitude in understanding monetary markets. His curiosity in economics and finance draw his consideration in the direction of the new rising Blockchain Technology and Cryptocurrency markets. He is constantly in a studying course of and retains himself motivated by sharing his acquired data. In free time he reads thriller fictions novels and typically discover his culinary expertise.

    The offered content material might embody the private opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any accountability for your private monetary loss.

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