bitcoin (BTC) consolidated higher on July 16 after the end of the Wall Street trading week with modest gains for US equities.
Can Bitcoin Bulls Recover the 200-Week Moving Average?
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD trading between $20,500 and $21,000 over the weekend.
The pair thus preserved most of their return from lows of the weekthese following inflation data in the United States and causing weakness in risk assets.
Now trading after hours meant the classic scenario breakouts and counterfeits on thin liquidity could accompany Bitcoin through the weekly close.
Order book data from Binance, the world’s largest exchange by volume, showed key resistance clustered around the $22,000 mark should the bulls attempt to push the market higher.
Watching the resource material indicators, however, there was a distinct possibility that Bitcoin could even challenge its 200-week moving average (WMA), a bear market key trend line lost as support more than a month ago.
#BTC is looking for a retest of the 200 WMA, currently ~$22.6k. #FireCharts pic.twitter.com/rRvbI8cPl2
— Material Indicators (@MI_Algos) July 15, 2022
“It’s easy to go bullish on BTC on a green day and bearish on a red day,” popular trader and analyst Rekt Capital added in separate comments.
“But $BTC is still between $19,000 and $22,000. This will continue until one of these levels is breached. Intra-range moves are not substantial enough to dictate shifts in sentiment.”
Like Cointelegraph reportedthat sentiment hit an unenviable high this week, as crypto markets capped their longest time in a state of “extreme fear” according to the Crypto Fear & Greed Index.
Miners feel the pinch
Meanwhile, monitoring miner behavior, an analyst from on-chain analytics platform CryptoQuant sounded the alarm over a possible sell-off.
Related: Bitcoin Miners Sell Their Hodlings and ASIC Prices Keep Falling – What’s Next for the Industry?
14,000 BTC was transferred from miners’ wallets on July 15, Binh Dang showed, and while not specifically indicative of the sell-off, the phenomenon was worth tracking.
“At this point, we can’t be sure if this distribution is positive or negative, so we have to be careful to be careful for the next few days,” he said. abstract in one of CryptoQuant’s Quicktake Marketplace updates.
Separately, a new indicator, the Energy Gravity Model, covering Bitcoin’s production costs, showed that miners were likely able to pay relatively small amounts for energy in order to profitably mine at spot prices. current BTC.
“Bitcoin Energy Gravity is the maximum price in USD ($/kWh) at which modern mining rigs are willing to buy electricity to make a profit. That is: the electricity rate of balance,” explained the model’s creator, BlockWare analyst Joe Burnett, in a Twitter feed.
“From this maximum bid price, it is possible to better understand when the price of Bitcoin is exceeded and when the price may be approaching a bottom.”
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