Bitcoin ready to attack key trendline, says data as BTC price holds $20K

After modest gains in US equities, Wall Street’s trading week ended with modest gains for Bitcoin (BTC), Bitcoin (BTC), consolidated higher on July 16.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

Can Bitcoin bulls recover the 200-week moving mean?

Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD ranged between $20,500 and $21,000 during the weekend.

This allowed the pair to recover the bulk of its gains from the week’s lows. These were due to shock U.S. inflation data, and causing weakness across risk assets.

Out-of-hours trading was a possibility, meaning that Bitcoin could be subject to the same scenario as before: fakeouts on thin liquidity and breakouts.

Binance is the world’s largest exchange in volume and has shown key resistance. Bulls should try to push the market higher by looking at order book data.

However, it was possible that Bitcoin could challenge its 200-week moving mean (WMA) for monitoring resource material indicators. This is a crucial bear market trendline that was lost as support over a year ago.

#BTC is seeking another retest for the 200 WMA. Currently, $22.6k. #FireCharts pic.twitter.com/rRvbI8cPl2
— July 15, 2022 Material Indicators (@MI_Algos

Popular analyst and trader Rekt Capital said, “It’s simple to become bullish for BTC on green days & bearish upon red days.”

“But $BTC still only varies between $19K and $22K. This trend will continue until one of these levels is broken.

Cointelegraph reported that this sentiment reached an unenviable level as crypto markets closed their longest-ever period of “extreme fear”, according to the Crypto Fear & Greed Index.

Miners feel the pinch

One analyst at CryptoQuant, an on-chain analytics platform, raised concerns about a possible sell-off by monitoring miner behavior.

Related: Bitcoin miners are selling their hodlings and ASIC prices continue to drop — What’s next?

Binh Dang revealed that 14,000 BTC were transferred from miner wallets July 15. Although not directly indicative of selling, this phenomenon was interesting.

“At this stage, we cannot be certain that this distribution will be positive or negative, so it is important to be vigilant for the next few days,” he stated in one of CryptoQuant’s Quicktake market updates.

A separate indicator, the Energy Gravity Model that measures Bitcoin production costs, showed that miners could likely pay relatively low amounts of energy to mine Bitcoin at current BTC spot price profits.

“Bitcoin Energy Gravity” is the maximum USD price ($/kWh) that modern mining rigs will buy electricity for to make a profit. Joe Burnett, BlockWare analyst, explained the model’s creator in a Twitter thread.

It is possible to determine when Bitcoin’s price is too high or low by looking at the maximum bid price.

Bitcoin Energy Gravity Model. Source: Joe Burnett/ Twittercom. You should do your research before making any investment or trading decision.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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