Bitcoin (BTC) At the 200-day moving average, watch this level

The world’s largest cryptocurrency Bitcoin (BTC) continues to show strength and has made a move above the $22,200 level, gaining 3% in the last 24 hours. According to the technical charts, BTC is trading at an important pivot point for its 200-day moving average (MA).

Last time, BTC had faced a strong rejection at these levels followed by a big correction. As popular cryptanalyst Ali Martinez explains:

Last time #Bitcoin reached 200MA on the 12-hour chart, it resulted in a steep correction. TD Sequential now presents a sell signal at the same level, awaiting a retracement. $BTC needs to print a 12-hour candlestick close above $22,950 to invalidate the bearish outlook.

Also, on-chain data for Bitcoin realized profit/loss shows that there is profit taking at every price increase for Bitcoin. The realized profit/loss ratio for Bitcoin is currently below 1.0, highlighting a strong bear cycle. As Glassnode explains:

An interesting observation is the upward trend that started in early June, and peaked in mid-August, after dropping to 0.58. This pattern reaffirms that a surge in profits took place by investors during that relief rally.

Some positive developments for Bitcoin

After trying to fall below $20,000 last week, BTC price was quick enough to bounce back and is holding $20K as a strong support level. Enter the number of active addresses. analyst Ali Martinez also believes that the Bitcoin bottom may be in. In one of his last tweets, the cryptanalyst wrote:

Number of new daily $BTC addresses on the network seem to be increasing rapidly, with the weekly average of around 410,000 addresses. A sustained move over 415,000 #BTC addresses can confirm the optimistic outlook.

Moreover, the total number of BTC addresses with at least one or more Bitcoins has reached close to 100,000. This shows that the retail players continue to accumulate.

Bhushan is a FinTech enthusiast and has a keen flair for understanding the financial markets. His interest in economics and finance draws attention to the emerging markets of blockchain technology and cryptocurrency. He is continuously in a learning process and stays motivated by sharing his acquired knowledge. In his spare time, he reads thriller novels and sometimes explores his culinary skills.

The content presented may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication has no responsibility for your personal financial loss.