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.
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.
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.
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