Bitcoin Struggles to Move Past Its 200-Week Moving Average, More BTC Downside Possible
Altcoins posed a solid show over the last week with Ethereum (ETH) leading the pack and moving past $1,500 as of press time. On the other hand, Bitcoin’s performance remains relatively subdued!
While gaining 10% over the last week, BTC continues to face strong resistance at its 200-week moving average. Facing rejection at its 200-week moving average, BTC is currently trading at $22,102 levels.
That damn 200-week moving average just keeps being a sticky line for #bitcoin! pic.twitter.com/VnYSTcOcsT
— Lark Davis (@TheCryptoLark) July 19, 2022
If Bitcoin fails to breach these levels, we can expect some trend reversal and profit booking very soon. Now, let’s take a look at what some of the on-chain metrics have to suggest going forward.
Bitcoin On-Chain Metrics
Bitcoin’s current spot price is currently trading below its realized price. Historical trends suggest that this has been the period of accumulation in the past bear cycles. Considering the previous bear cycles, the average time spent under the realized price is 197 days. During the 2022 bear market, we are just 35-days on the clock, notes Glassnode.
On the other hand, Glassnode explains that Bitcoin’s MVRV ration has dipped under 1.0. Low MVRV ratios tells that the current market price is below the acquisition price of on-chain investors. Ideally, an MVRV ratio above 1.0 suggests market strength. As Glassnode explains:
The MVRV Ratio is currently trading at 0.953 (-4.67% unrealized loss), which is not as deep as the average of 0.85 (-15% unrealized loss) seen in previous bear cycles. This may mean further downside and/or consolidation time is required to establish a bottom. However, it may also signal that a greater degree of investor support exists in this bear cycle.
Popular crypto market analyst Lark Davis calls this a bear market rally, and suggests follower to exit positions after some recent pumps. In his Twitter post, Davis wrote: “PSA control your emotions, this is a bear market rally until proven otherwise. Lots of opportunities to make trades, maybe even exit some positions, but tread carefully”.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- XRP In Spotlight As Ripple Partner SBI Holdings Reveals New Tokenized RWA Plan In Japan
- Binance Suspected of Suffering Over $5B Hack as Tether, Circle Freeze Assets
- HTX Ends UK Crypto Services as FCA Settles Lawsuit Over Marketing Rules
- Polymarket Halts Trading Amid Reports Of Users’ Wallets Being Drained
- Crypto Stocks to Watch as Prices Retreat & Analysts Remain Bullish
- What to Expect From MSTR Stock Price After Strategy’s Q3 Earnings Release
- CRCL Stock Forecast Ahead of Key U.S. Inflation Data: Bullish or Bearish?
- Bitcoin Price Prediction as ECB and BoJ Rate Decisions Loom After Warsh’s Neutral Tone
- SpaceX Stock Price Prediction Ahead of Crucial FCC Vote on Starlink Spectrum Expansion
- Pepe Coin Price Jumps 15% as Justin Sun Buys $51M in PEPE: Is More Upside Ahead?
- XRP Price Outlook as RLUSD Becomes First Stablecoin to Earn Moody’s Investment-Grade Rating
