The world’s largest digital currency Bitcoin (BTC) continues to show its strength and has given a move above the $22,200 level, gaining 3% in the past 24 hours. According to the technical charts, Bitcoin is trading at a crucial intersection with the 200-day moving average (MA).
The last time, BTC faced a strong rejection at these levels followed by a massive correction. As famous crypto analyst Ali Martinez explains:
The last time # bitcoin It reached 200MA on the 12 hour chart, which led to a sharp correction. TD Sequential is now giving a sell signal at the same level, anticipating a rebound. BTC dollars You must print a 12-hour candlestick close above $22,950 to invalidate the bearish outlook.
Also, the on-chain data for realized Bitcoin profit/loss shows that there is a profit taking on every rise in the Bitcoin price. Bitcoin’s realized profit/loss ratio is currently below 1.0 highlighting a strong bearish cycle. Like Glassnode explain:
An interesting note is the uptrend that started in early June, peaked in mid-August, and has since fallen to 0.58. This pattern once again confirms that investors made a slight uptick in profit taking during this comfortable rally.
Some positive developments in Bitcoin
After attempting dips below $20k last week, bitcoin price was quick enough to bounce back and hold $20k as a strong support level. Quoting the number of active addresses. Analyst Ali Martinez also believes that a Bitcoin bottom could be in place. In one of his recent tweets, the crypto analyst wrote:
New number daily BTC dollars The addresses on the network seem to be increasing rapidly, with the weekly average hovering around 410,000 addresses. Continuous movement above 415000 #BTC Headlines can confirm optimistic forecasts.
Also, the total number of BTC addresses containing at least one or more bitcoins has reached nearly 100,000. This shows that retail players continue to accumulate.
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