Bitcoin (BTC) made a big jump shortly before the time of writing. The price breaks through the crucial limit of $22,000. Bitcoin is now rising above its July 8 peak, meaning bitcoin may finally be climbing out of the range where prices have been locked in for weeks.
Bitcoin price rises 3%
The bitcoin price already made a nice jump over the weekend due to a short squeeze, but still struggled to break the zone around USD 21,500 and USD 21,600. Bitcoin then corrected slightly, but when the price reached $20,800 last night, bitcoin started to rise again.
That gain kicked into gear early this morning and bitcoin rocketed to a peak of $22,300. At the time of writing, the resistance here still seems a bit too large and bitcoin drops to $22,200 on Binance and $22,200 on Bitvavo. As a result, the share price is up 3% today.
Ethereum merge hype and moving averages
It seems that the hype surrounding the upcoming merge of Ethereum (ETH) is now attracting the rest of the market as well. There has been a gap in the record and a lack of prospects in the crypto market in recent months. The merge seems to fill this gap and bring enthusiasm back to the market.
Whether bitcoin has actually climbed out of its current range, however, depends on where you draw the line on the chart. This line can be drawn at $22,000, where bitcoin peaked on July 8, as well as around $22,600-$22,800. There, bitcoin was rejected when the price fell into this range for the first time. There is also the crucial 200-week simple moving average (SMA).
#Bitcoin Kindly reminder. 💡🧠
Please just don’t go into FOMO.
If you’re doubt – zoom out the chart.🧐 pic.twitter.com/v5HaDspOAO— IT Tech (@IT_Tech_PL) July 18, 2022
There is still fear that bitcoin will be rejected here and then a lower low going to look up under $18,000. If not, market sentiment could suddenly turn quickly and FOMO hit. For a true trend reversal, bitcoin may need to break the 200-day SMA first, which is only around $35,000.
Still, analyst Will Clemente writes that bitoin has been below the 200-day SMA less than 2% of the time. Those were always very scary moments to get in, but in hindsight, apparently.
Bitcoin has only been this far below its 200-day moving average a handful of times (<2%), each of which looked terrifying to buy at the moment, but terrifyingly obvious in hindsight. pic.twitter.com/ESZuY344iC
— Will Clemente (@WClementeIII) July 18, 2022
Bitcoin & miner capitulation
Analysis firm Glassnode reports that during the two biggest capitulation events this year, the most volume of BTC was sold at a loss since 2011. When terra (LUNA) crashed, a whopping 538,000 BTC was sold at a loss. In the June crash, it was 480,000 BTC and that brought the price below the all time high from 2017
2022 has seen #Bitcoin markets weather two enormous capitulation events, both with the largest $BTC transfer volume lost since 2011.
When LUNA collapsed, the total transfer volume in loss was 538k $BTC.
This was followed by 480k $BTC as the market traded below the 2017 ATH. pic.twitter.com/oKjBm4JgjE
— glassnode (@glassnode) July 17, 2022
Lately we have written in these market updates that bitcoin miners are under considerable pressure due to the high energy prices and low exchange rate. Cryptoquant analyst Edris reports that according to on-chain data it seems that BTC miners are now capitulated after all.
That’s a bearish sign for the short term. Gradually, the market is even starting to talk about a so-called “death spiral” regarding miners, just like during the crypto winter of 2018. That eventually did not materialize.
Miners are finally capitulating
“The Miners are under a lot of pressure as the recent price decline of #Bitcoin has made mining far less profitable, putting many miners at a loss.”
by @TradingRageRead More👇https://t.co/xrzRhqdS8V
— CryptoQuant.com (@cryptoquant_com) July 18, 2022
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