Bitcoin ready to attack key trend line, data says as BTC price holds $ 20K

by · July 16, 2022

Bitcoin (BTC) consolidated higher on July 16 after the trading week on Wall Street ended with modest gains for US stocks.

BTC / USD 1-hour light chart (bit stamp). Source: TradingView

Can Bitcoin bulls regain the 200-week moving average?

Data from Cointelegraph Markets Pro and TradingView showed BTC / USD of between $ 20,500 and $ 21,000 into the weekend.

The pair thus maintained most of the comeback from the week’s lowest levels, after shocking US inflation data and triggered weaknesses in risk assets.

Now trading outside the opening hours meant that the classic scenario with eruptions and false outcomes on thin liquidity could follow Bitcoin into the weekly closing.

Looking at order book data from Binance, the largest global stock exchange in terms of volume, showed key resistance around the $ 22,000 mark if bulls were to try to push the market higher.

For monitoring resource material indicators, however, there was a clear possibility that Bitcoin could even challenge its 200-week moving average (WMA), a key trend line for the bear market lost in support over a month ago.

“It’s easy to get bullish on BTC on a green day and bearish on a red day,” popular trader and analyst Rekt Capital added in own comments.

“But $ BTC still varies only between $ 19K- $ 22K. This will continue until one of these levels is broken. Intra-range movements are not significant enough to dictate changes in sentiment.”

As the Cointelegraph reported, this sentiment reached an unenviable record this week, as the crypto markets limited their longest period ever in a state of “extreme fear” according to the Crypto Fear & Greed Index.

Miners feel the pinch

Meanwhile, an analyst at the analytics platform CryptoQuant sounded the alarm due to a potential sale.

Related: Bitcoin Miners Sell Their Hoddings, and ASIC Prices Continue to Fall – What’s Next for the Industry?

14,000 BTC was transferred from miners’ wallets on July 15, Binh Dang showed, and although it did not specifically indicate sales, the phenomenon was worth tracking.

“At this time, we can not be sure that this distribution is positive or negative, so we should be careful about watching over the next few days,” he summed up in one of CryptoQuant’s Quicktake market updates.

Separately, a new indicator, the Energy Gravity Model, which covers the cost of production of Bitcoin, showed that miners were likely to be able to pay relatively low amounts of energy to extract at a profit at current BTC spot prices.

“Bitcoin Energy Gravity is the maximum USD price ($ / kWh) modern mining rigs are willing to buy electricity for in order to make money. That is: breakeven electricity rate,” explained model creator BlockWare analyst Joe Burnett in a Twitter thread.

“From this maximum bid price, it is possible to get a better understanding of when the price of Bitcoin is overvalued and when the price may be approaching a bottom.”

Bitcoin Energy Gravity Model. Source: Joe Burnett / Twitter

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