This Bitcoin indicator gives $22,400 as the most important level to hold, here is why
In accordance Glass nodethe Bitcoin URPD indicator shows that over 530,000 BTC, or 3.18% of supply, changed hands in the $22,400 price range. This area is currently the largest volume node, showing investor interest around the key cost basis of the realized price.
The #Bitcoin URPD shows that +530,000 BTC (3.18% of supply) changed hands around the $22,400 price region.
This area is now the largest volume node, showing investor interest around the key costs in the chain:
– Realized price: $21,773
– Realized LTH price: $22,722 pic.twitter.com/8NGhNCUX7I— glassnode (@glassnode) 12 August 2022
The $22,400 level is also quite important as it is close to the 200 WMA ($22,877), which historically has been an indicator of a bottom formation, according to Glassnode.
With a current price of $24,458, Bitcoin is currently trading above both the realized price, which is $21,773, and the long-term owner (LTH) realized price, which is $22,722. This represents the average value of the BTC coin supply from the last transaction in the chain.
With BTC prices above the realized price, the short-term outlook has improved with participants willing to gain exposure to the leading cryptocurrency. The total mining balance has decreased by around 4700 BTC in the last two weeks. This shows that during the recent price rise, miners took up some exit liquidity, perhaps to strengthen their balance sheet and manage risk.
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The #Bitcoin hash bands remain reversed, indicating residual stress in the mining industry.
However, the sooner the 30DMA begins to stabilize, which suggests some improvement in miners’ financial conditions.
Diagram: pic.twitter.com/CsQrc8BsXG
— glassnode (@glassnode) 12 August 2022
The fact that Bitcoin hash tape is still inverted indicating that there is still stress in the mining sector. However, the faster the 30 DMA begins to stabilize, signaling that the economic situation of miners may improve. Miner stress reached its climax in June when BTC prices fell below $20,000. Glassnode observes that the distribution of miners to exchanges has decreased significantly recently, indicating that while industry stress is still present, “the worst may be behind us.”
Bitcoin “forms” another base
In accordance Fidelity’s Jurrien Timmer“Bitcoin is trying to form another base, and so far it looks like a good one.”
Bitcoin is trying to form another base, and so far it looks like a good one. pic.twitter.com/VOh9VRY6yf
— Jurrien Timmer (@TimmerFidelity) 12 August 2022
Bitcoin’s price is in the process of increasing relief, bringing it closer to the $25,000 mark, but it remains weighed down by long-term macro indicators, suggesting that more time may be needed to establish a solid base.
Some simple moving averages have shown relevance to Bitcoin price action over time, according to Glassnode. The 200 WMA (weekly moving average), currently at $22,877, has historically acted as a sign of the beginning of a bottom. The key crossover barrier between macro bull and macro bear momentum continues to be the 200 DMA (daily moving average) at approximately $33,000.
