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

That is for the very first time that Bitcoin has fashioned a 3rd consecutive weekly candle under its 200-Week Transferring Common.

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

Final week, BTC printed comparable buy-side quantity to the 2018 Bear Market Backside on the 200-week MA Throughout the formation of the 2018 backside nevertheless, that purchaser quantity preceded additional -20% draw back If $BTC have been to drop an additional -20% quickly, worth would attain ~$16400.

Will Bitcoin DownTrend Proceed Additional?

The current Bitcoin worth correction comes on the heels of heavy offloading carried out by Bitcoin miners. As per banking big JPMorgan, these gross sales may proceed to place stress on Bitcoin. In a be aware to shoppers, the JPMorgan strategists said:

“Offloading of Bitcoins by miners, so as to meet ongoing prices or to delever, might proceed into Q3 if their profitability fails to enhance. The offloading has probably already weighed on costs in Might and June, although there’s a threat that this stress might proceed.”

The price of Bitcoin mining as of date might range relying on the dimensions of Bitcoin manufacturing. For a big mining firm, the BTC manufacturing prices stand someplace round $8,000.

Additionally, on-chain knowledge supplier Glassnode explains that the 2020 bear market has been the worst on document. In its report, Glassnode notes: “Spot costs are presently buying and selling at an 11.3% low cost to the realized worth, signifying that the typical market participant is now underwater on their place”.

Throughout the Bitcoin worth crash earlier this month, buyers locked a lack of -$4.234B in a single day, an enormous 22.5% increased than its earlier document of $3.457B set in mid-2021.

Bhushan is a FinTech fanatic and holds a very good aptitude in understanding monetary markets. His curiosity in economics and finance draw his consideration in direction of the brand new rising Blockchain Know-how and Cryptocurrency markets. He’s constantly in a studying course of and retains himself motivated by sharing his acquired information. In free time he reads thriller fictions novels and typically discover his culinary abilities.

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