Bitcoin (BTC) held its true value just below $22,000 on July 25 as Wall Street opened with a flat performance.
Bitcoin provides additional key levels
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it consolidated after dropping from $23,000 overnight.
The pair echoed stocks in cold trading ahead of the Federal Reserve’s July 27 interest rate decision. Analysts expected several days of volatility, and despite the fact that the interest of buyers in Bitcoin was strong below the spot price, everything could still change.
No guarantee that support will remain after Wednesday #FED announcement, but for now #FireCharts shows a level of #Bitcoin offers around this next technical support. https://t.co/Ng2Rqc0Op7 photo.twitter.com/W6veJMS2YJ
— Content Indicators (@MI_Algos) July 25, 2022
“Big week ahead for markets,” Umar Ashraf, founder of trading tool TradeZella, prediction.
“Tons of big names reporting earnings along with the FOMC starting Tuesday and then the announcement on Wednesday.” A big week doesn’t always mean the market has to see action, it could be a period for the market to digest information before the next move.
As traders prepared to react, Bitcoin became unsettled by struggling to hold any of its 200-week moving average (MA), 50-day MA or the live price, which sits at $22,700, $22,200 and $21,850, respectively. order.
The last of these, the price at which the Bitcoin average last moved, had been reclaimed as support just a week earlier.
Comparing realistic price behavior this year to previous bear market years, analyst Root warned that the next step could be another extended dip below the trend line.
— Root (@therationalroot) July 25, 2022
Taking a more hopeful outlook, meanwhile, PlanB, creator of stock-to-flow Bitcoin price models, noted that the speed with which Bitcoin bounced above its 200-week MA this month could prove to be an underlying strength absent from similar bearish levels.
“Typically, after BTC goes below the real price, it takes much longer for BTC to jump back above the 200-week moving average. But it already did,” he said explained.
“Also, the 200-week moving average and the real price have already touched (which usually takes longer too).”
Little fish scoop up dumped institutional coins
Data, meanwhile, showed the extent of supply transfers from larger to smaller investors in recent months.
Related: Will Fed Stop BTC Price From Hitting $28K? – 5 things to know in Bitcoin this week
In its latest research, crypto analytics firm Arcane Research calculated the institutions’ combined sales to be over 236,000 BTC since May 12, when Terra LUNA – now Terra Classic (LUNC) – vented.
“The 236,237 BTC figure is derived from massive institutional bombs and other large known selling seen during market stress over the past two months,” it wrote.
“The number does not take into account other natural surrender and hedging activity that typically occurs in crypto bear markets.”
Meanwhile, data from another on-chain analytics platform Glassnode showed that parties with 1 BTC or less in their possession were increasing faster than ever as a percentage of the total BTC supply.
— Documenting Bitcoin (@DocumentingBTC) July 25, 2022
The trend had strengthened significantly in 2022, in particular, showed the data, which was uploaded to Twitter by the popular account Documenting Bitcoin.
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