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 Fear and Greed Index is 30 – Fear
Current price: $22.657 pic.twitter.com/JLg0HpWZ9a— Bitcoin Fear and Greed Index (@BitcoinFear) July 24, 2022
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 might be using the 200-week moving average cloud as resistance for the first time ever.
200EMA
200 SMAEveryone was calling this level out as potential support, but no one wants to admit that it’s also potential resistance.
Risk management remains preferable. pic.twitter.com/fpWTH1t5bX
— Caleb Franzen (@CalebFranzen) July 25, 2022
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.
1-hour time frame
Descending flag pattern
Normally a bullish continuation
Sometimes a bullish trapWhich one is it right now? pic.twitter.com/LwRekSoxeA
— Shayan.₿TC 📈📉 (@greatest_trader) July 25, 2022
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.
#Bitcoin| watch out for this support level between $20,760 and $21,500. https://t.co/FlUnBS5pEE
— Ali Martinez (@ali_charts) July 25, 2022
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.
Big Tech earnings this week
July 26 Google + Microsoft
July 27th Meta
July 28th Applenext week
———————————
Aug 4th Amazon pic.twitter.com/CZdrnWEIjy— Pentoshi 🐧 (@Pentosh1) July 25, 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.
#Bitcoin Miner movements 👀
Looks they’re still distributing $BTC 💡🧠 pic.twitter.com/R8hhVmMzba
— IT Tech (@IT_Tech_PL) July 24, 2022
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.
#Bitcoin #OnChain 📉📈
📊 Number of 🐳’s addresses by @whale_map📝 Throughout 2022, whales have increased and this shows that a lot of buying and accumulation has happened during the recent declines.
☑️ We have to wait for the effects of this issue. pic.twitter.com/q20sf25E2N— Amir Jafarzadeh (@AmirJafarzade77) July 24, 2022
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.
Even if the bottom is already in (which is far from being guaranteed) remember that typically it takes a couple of years for risk assets to recover from these kinds of corrections. 📈🧐👇 pic.twitter.com/SJHRbLeFBv
— ecoinometrics (@ecoinometrics) July 24, 2022
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