Bitcoin Sets Sights on Key Trendline, Holds $20K Price Level

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Bitcoin
Bitcoin Sets Sights on Key Trendline, Holds $20K Price Level

In light of exchange order book composition, the 200-week moving average may be tested again by BTC bulls next. After modest gains for U.S. stocks in the Wall Street trading week, Bitcoin (BTC) consolidated higher on July 16.

Reclaiming the 200-week Moving Average?

According to TradingView and Cointelegraph Markets Pro data, the BTC/USD pair traded between $21,000 and $20,500 throughout the weekend. It managed to maintain its recovery from the week’s lows, which were triggered by the shock U.S. inflation data.

Out-of-hours trading brought about the possibility of fakeouts and breakouts on thin liquidity. It could cause Bitcoin to close the week with a bang. Order book data from Binance, the world’s largest exchange by volume, showed that key resistance around the $22,000 mark could be critical support.

For technical analysis, Bitcoin could challenge the 200-week moving average, a key support level during the bear market. According to Rekt Capital’s analyst, Bitcoin is often considered a bullish asset on a green day and a negative one on a red day. This week, the sentiment in the market reached an extreme fear level, which was the longest-ever period of extreme fear in the history of cryptocurrencies.

Anxiety Grips Miners

On-chain analytics firm CryptoQuant detected a potential sell-off in the mining industry on July 15. According to analyst Binh Dang, 14,000 BTC was transferred from a miner’s wallet to another on July 15. While not specifically indicative of a sell-off, this phenomenon is worth monitoring.

In a recent Quicktake update, CryptoQuant’s analyst noted that the company’s distribution could be negative or positive. He said that investors should be careful about taking positions in the market.

A new indicator called the Energy Gravity Model revealed that Bitcoin miners could get by with relatively low energy costs. It is because they could mine at a profit when the prices of Bitcoin were at current levels.

According to Joe Burnett, an analyst from Blockware, Bitcoin mining rigs are willing to pay for electricity at a breakeven rate. It is because they’re able to earn a profit from the usage of electricity.

The Inflow of Bitcoin Miners Reaches New Highs

According to I.T. Tech miners transferred over 14,000 Bitcoin to exchange in just one block. It considered this to be very unfavorable for the market. The company defines a mining pool wallet as collecting all pool members, including the specific miner.

According to a user, the Bitcoin market is not reflected in the derivatives or the spot market. According to Glassnode, the Netflow Volume of the Bitcoin miners on a seven-day moving average reached an all-time high of almost $1.75 million. Notably, in January 2022, the ATH of the cryptocurrency was $1,700,940.

According to Ki Young Ju, the CEO of CryptoQuant, the outflow from the exchange wallet did not stop there. It will most likely end up in a cold wallet. Folks can use this type of service for both short and long-term trading. He believes that the news is either neutral or bullish.

Could Prices Rise?

According to I.T. Tech, open interest in Bitcoin is increasing, and the market may soon grow. However, the report also noted that the number of miners’ reserves has decreased, which could signify investors’ decreasing confidence in the price turnaround.

Bitcoin has gained 6% in the past 24 hours. The price of the cryptocurrency is currently trading at $20,953. Its 24-hour trading volume is up 2% at $32.8 billion.

According to Santiment, the number of active Bitcoin addresses has increased significantly over the past 24 hours. There were almost a million active addresses at press time, significantly higher than the 860,000 on July 14.

The change in the volume of Bitcoin over the past 24 hours is similar to the scenario described above. For most people, the price increase on July 15 is a sign of relief. However, at the time of writing, Bitcoin’s market cap is around $385 billion, a significant increase from its previous position.