Bitcoin (BTC) eased hodler pain by losing $ 20,000 on June 15 after BTC / USD came dangerously close to the peak of the last round.
Bitcoin “bottom” deceives no one
Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD rose higher after reaching $ 20,079 on Bitstamp.
During the break from the sale, the pair followed US shares higher on Wall Street open and went to 21,700 dollars. The S&P 500 rose 1.4% after the opening bell, while the Nasdaq Composite Index rose 1.6%.
Renewed market power, commentators said, is due to the fact that the majority has already priced too large policy rate increases by the Central Bank, which is to be confirmed on the day.
Nevertheless, it was a cryptocurrency that became the worst hit in the inflation environment, said Mike McGlone, head of commodity policy at Bloomberg. In a tweet he said contrasts Bitcoin and altcoin performance with sky-high commodities, particularly WTI crude, which now traded at nearly double the 200-week moving average.
“Unprecedented Crude Oil vs. Bitcoin Bottom, Bonds, Gold – Historically Extremely Stretched in Crude Oil Futures Above the 200-Week Average, there is enough fuel to raise inflation, consumer sentiment to fall, Central Bank rate hikes to accelerate, and persistent hangovers.”
Despite price suppression, many were not convinced that Bitcoin could sustain even the low $ 20,000 range for much longer.
“We have not yet seen the submission of cryptocurrencies,” said a popular Crypto Tony trader said Twitter followers.
“It’s close, but it does not feel like it is yet. Every jump is filled with optimism and it should not be so.”
Rekt Capital’s trader and expert agreed and said that the sale had not been accompanied by a reasonable amount.
“Strong market sales are underway for BTC,” he said wrote on that day.
“Undoubtedly, the seller’s fatigue is ahead. Keep an eye out for high volume bars when selling. These tend to indicate that the bottom is after steady sales and are ahead of a complete development reversal over time.”
As the Cointelegraph reported, the 200-week moving average of Bitcoin was $ 22,400, Rekt Capital warned that the level could now form a price magnet for weeks or even months.
However, losses do not equate to “capitulation” data
The data, meanwhile, showed the extent to which panic sales had taken place in the short term.
Related: Bitcoin mining exchange flow reaches a 7-month high as BTC price tanks are below $ 21K
Weekly redeemed losses reached 2.6% of Bitcoin’s redeemed peak, the highest ever, according to figures from chain analytics company Glassnode illustrated by CryptoVizArt.
– CryptoVizArt.btc ∞ / 21M – LOST #BTC (@CryptoVizArt) June 15, 2022
Net unrealized gain / loss (NUPL) of Bitcoin, which includes non-physically traded currencies, also showed that a significant proportion of restricted supply was underwater – the highest since March 2020.
According to the attached scale, the measured value has turned red after falling below zero, ie. historical “capitulation” area.
The views and opinions expressed herein are those of the authors only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading business involves risk, you should conduct your own research when making a decision.
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