Bitcoin on the verge of falling under key support; Is there a recurrence of coronary heart disease?

Analysts believe the price of bitcoin is on the verge of breaking key support, the passage of which could lead to a collapse similar to the Crown epidemic; The decline, of course, was followed by an unprecedented jump in the market.

According to the Coin Telegraph, the price of bitcoin again approached the level of $ 38,000 yesterday due to market uncertainty.

Graph for presenting the price of bitcoin / dollar in one-hour view
One-hour chart of the price of bitcoin in dollars.

Bitcoin is now moving at $ 39,000 after repeated attempts by traders to break the $ 38,000 support level.

The price of bitcoin jumped just over $ 40,000 on Friday, but returned to its previous trend in a few minutes due to current political developments.

These “fraudulent jumps” to reach higher levels this month were a familiar event for market participants. During this period, bitcoin returns to its previous position each time after the beginning of an upward trend and in these cycles eliminates the short and long positions in the market.

However, if we look at the chart of bitcoin for short periods of time, we will find that the price of this digital currency may fall further.

The analytical website Material Indicators told its Twitter followers yesterday:

Bitcoin 3-day candlesticks are approaching the moving average (MA) of 200 candlesticks. This is the first time this has happened since the outbreak of the Corona virus and the fall of bitcoin. Make sure you have enough money to take advantage of the opportunity to purchase if this happens in a 1-week market view. Jumping after a fall can change your life forever.

The 200-week moving average of bitcoin is currently just over $ 20,000 and continues to rise. This index has so far acted as a solid historical floor for bitcoin and has never been broken.

Graph for presenting the price of bitcoin / dollar per week with 200 moving average indicator
Weekly chart of bitcoin prices in dollars and 200-week moving average.

In order for bitcoin to reach this historical floor, it must move away from 50% of its current price and 70% of its historical maximum. It is worth noting that bitcoin has never experienced such a decline.

For example, after the outbreak of the Corona virus, the value of bitcoin fell by 60% in just a few days. Then the price entered an upward trend, which was just as strong, pushing it to a new price peak in the same year.

Last week, the S & P500 and Nasdaq fell 2.9% and 3.5%, respectively, and the correlation between them and bitcoin continues.

Earlier, Pentoshi, a popular financial market trader, indicated that he believed something similar to the historic 1929 Wall Street collapse could happen this year.

Big and small investors continue to buy bitcoins

On the other hand, the purchase of whales and the growth of the assets of the micro-investor’s portfolio gave hope to long-term traders.

On Friday alone, 30,000 bitcoins ($ 1 billion) were withdrawn from the CoinBase exchange, and stock exchanges declined by July and September 2021 (July and September). It is worth noting that in 2021, shortly after the reduction of stock exchanges, the price of bitcoin rose sharply.

Lex Moskovski, CEO of Moskovski Capital, based on data from the analytical company Glassnode, reviewed changes in the availability of bitcoin portfolios.

He said:

Wallets with between 10 and 100 bitcoins are accumulating strongly and their inventory continues to grow. These are the people who sold their bitcoins when the price of bitcoin rose from $ 10,000 to $ 50,000.

Publishing the chart below shows that the share of corporate investors in the supply of bitcoins has reached its highest level in the past year. It is assumed that each person has one or more of these addresses.

Bitcoin supply share held by institutions with assets between 10 and 100 units
Share of institutional investors in the supply of bitcoins; These investors have between 10 and 100 bitcoins.

Post Bitcoin is on the verge of falling under key support; Is there a recurrence of coronary heart disease? appeared first for currency.

Leave Your Comment

Your email address will not be published.

Supportscreen tag