Bitcoin drops 200WMA after test, market finally out of ‘extreme fear’ after months

While it may be hotter than ever in our little country today, bitcoin (BTC) is cooling down slightly. The price was unable to break the crucial 200-week moving average (MA) last night.

Nevertheless, last week’s gains are making market sentiment a lot more positive and fears are easing at a rapid pace. The fear & greed index now comes out at ’30’ and is therefore out for the first time in 10 weeks extreme fear area.

Bitcoin price drops by 2.5%

The bitcoin price finally broke through the $22,000 mark yesterday morning, an important level. When bitcoin hit $22,500 last night, the price briefly plunged all the way back to $21,500.

Bitcoin made a big bounce and that is a strong sign. Bitcoin then briefly rose above $22,800 and even touched almost $23,000 on several exchanges.

Bitcoin thus briefly rose above the crucial 200-week MA. However, that was only short-lived, the course was immediately rejected here. Bitcoin then fell rapidly, but found support around USD 22,000 early this morning.

However, at the time of writing, bitcoin struggles to hold its own above $22,000, dropping to $21,750 on Binance and $21,750 on Bitvavo. This means that the price is 2.5% in the minus compared to 24 hours ago.

Next Bitcoin Resistance Levels

Bitcoin has been establishing a pattern of for a week now higher highs and higher lowsIn other words, the price rises gradually. The 200-week MA was already expected to offer resistance, but there is still hope that bitcoin can recapture this level this week. In any case, the bounce to the $21,500 was already a good sign.

Should bitcoin hit the 200-WMA, the next resistance may be around $23,260, analyst Ali Martinez indicates. A large amount of BTC is held at that price.

Should bitcoin break through this as well, the next resistance may be at the 55-day exponential moving average (EMA) around USD 23,800. Then it may be the turn of the $27,000.

However, not all analysts agree on this. The market is currently very divided whether it is an actual rise from the bottom or a species bear market rally which may be short-lived. Analysts from the second camp still see bitcoin first in the near future lower low look up below $18,000 or even deeper. The macro does not seem to be going well for now, although that may depend on what the Federal Reserve decides after the FOMC meeting next week.

Bitcoin bullish on-chain data

Last night’s increase was accompanied by a significant spike in volume. Today the volume is up by no less than 50%. Transactions above $1 million even peaked to their highest level in more than a month. It is a sign that the whales become active, analyzes company Santiment reports:

Meanwhile, the Lightning Network’s capacity, a layer 2 scaling network for Bitcoin, keep rising. Jan Wüstenfeld reports that this is now a all time high has reached a whopping 4271 BTC:

Finally, analyst Degen Spartan shares four bullish charts based on on-chain data from Glassnode, which may have some hopium offer:

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