bitcoin (BTC) remained at its realized price just below $22,000 on July 25 as Wall Street opened with a flat performance.
Bitcoin Drops More Key Levels
The pair echoed stocks in quiet trading ahead of the US Federal Reserve’s July 27 interest rate decision. Analysts were expecting several days of volatility, and although buyer interest in Bitcoin is strong below the spot price, everything could still change.
No guarantee that the support will not be valid after Wednesday #NOURISHED announcement, but for now #FireCharts shows a scale of #Bitcoins offers around these next levels of technical support. https://t.co/Ng2Rqc0Op7 pic.twitter.com/W6veJMS2YJ
— Material Indicators (@MI_Algos) July 25, 2022
“Big week ahead for the markets,” Umar Ashraf, founder of trading tool TradeZella, provide.
“Tons of big names reporting profits alongside the FOMC starting Tuesday, followed by the announcement on Wednesday. A big week doesn’t always mean the market needs to see action, it could be a time period for the market to digest information for the next move.
As traders were poised to react, Bitcoin was thrown off balance as it struggled to maintain either of its 200-week moving averages (MAs), 50-day MAs, or realized prices, these standing at 22 respectively. $700, $22,200 and $21,850.
The last of these, the price at which the average Bitcoin last moved, had been recovered as support just a week before.
Comparing the price behavior achieved this year to previous bear market years, analyst Root warned that the next step could be another prolonged dive below the trendline.
— Root (@therationalroot) July 25, 2022
Taking a more optimistic outlook, PlanB, creator of the Bitcoin stock-to-flow price models, noted that the speed at which Bitcoin has bounced above its 200-week MA this month may belie the underlying strength missing from the price charts. similar bear phases.
“Normally, it takes much longer after BTC goes below the realized price, for BTC to get back above the 200 week moving average. But it was already the case,” he said. Explain.
“Furthermore, the 200 week moving average and the realized price have already touched (this normally also takes longer).”
Small fish pick up undervalued institutional coins
The data, meanwhile, showed the extent of supply migration from large investors to small investors in recent months.
In its latest research, crypto-analytics firm Arcane Research calculated the combined sale by institutional sources at over 236,000 BTC since May 12, the time of the Terra LUNA – now the Terra Classic (LUC) – eruption.
“The 236,237 BTC number is derived from massive institutional blowouts and other known large selloffs seen during the market crisis over the past two months,” he wrote.
“The number does not take into account other natural capitulation and hedging activity that typically occurs during crypto bear markets.”
Meanwhile, data from on-chain analytics platform Glassnode showed that entities with 1 BTC or less in their possession were growing faster than ever as an overall proportion of BTC supply.
— Documenting Bitcoin (@DocumentingBTC) July 25, 2022
The trend had strengthened significantly in 2022 in particular, data uploaded to Twitter by popular account Documenting Bitcoin showed.
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