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Bitcoin drops sharply, miners sell, this week is going to be very exciting

Bitcoin (BTC) had a strong week, peaking around $24,200 last Wednesday. Since then, however, bitcoin has been in a slight downward trend and the price even made a significant plunge last night. Market fears are on the rise again and it promises to be another exciting week with a volatile price.

Bitcoin price drops by 3.6%

The bitcoin price held above USD 22,000 last weekend. When the price arrived here on Saturday, bitcoin made a slight recovery. Last night, however, the price declined just below $23,000 and then began to fall sharply.

For now, bitcoin appears to have found support just above USD 21,800. The BTC price is rising to $21,950 on Binance and $21,500 on Bitvavo at the time of writing. This means that the BTC price is currently 3.6% in the minus.

200-week moving average continues to resist

Unfortunately, bitcoin has yet to break the 200-week moving average, a crucial level currently around $22,780, in support. Bitcoin was rejected just around this level last night, meaning the 200-week MA is acting as resistance for now.

Bitcoin price in downward trend

Bitcoin has been in a slight downward trend in recent days and may fall back into the range that the price was stuck in for weeks. It is possible that bitcoin will hold around this $22,000 and even a rebound makes. Then a retest of the 200-week MA will probably follow soon.

However, there also seems to be a good chance that bitcoin will correct even more deeply first. Analyst Ali Martinez suggests that support is likely to be high at USD 21,500 and then USD 20,760. However, he fears that if bitcoin falls through this, the price may be a lower low can look up around $16,000.

Volatile Week for Bitcoin with FOMC

It promises to be another volatile week with bitcoin. The next meeting of the Federal Open Market Committee (FOMC) will take place this week. Next Wednesday, July 27, we’ll be told what percentage the Federal Reserve will raise interest rates to keep inflation down.

If this works out higher than expected, because inflation has already turned out higher, this could in turn cause more fear, panic and selling pressure in the financial markets. There are even fears of an increase of 100 bps. It can also turn out the other way around. If this increase comes in less than expected, that may ease some pressure, and we may see a relief rally.

It won’t just stay with FOMC this week, many major tech companies will be publishing their earnings reports in the coming days. These stocks have a high correlation with bitcoin in 2022.

Bitcoin miners capitulate, whales accumulate

Meanwhile, it turns out on chain data that bitcoin miners are still selling, analyst IT Tech reports. That’s a bearish sign in the short term and can create more selling pressure.

On the other hand, the number of bitcoin whales, investors with large amounts of BTC, has grown sharply in 2022. That means that investors have accumulated considerably during the recent declines and that is a bullish sign in the long run.

Could be years before bitcoin recovers

Many analysts are still very divided whether bitcoin has already bottomed or not. But as Ecoinometrics warns, even though bitcoin has bottomed out, historically it could still be years before the price fully recovers.

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Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts’ own insights and experiences and are for educational purposes only.



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