By looking at the order books of the exchanges, we realize that the new upward trend of Bitcoin will begin if the 200-week moving average is broken.
Bitcoin (BTC) rose on July 16 after the Wall Street trading week ended. Data from Cointelegraph Markets Pro and TradingView show that BTC/USD traded between $20,500 and $21,000 over the weekend. The market’s largest cryptocurrency has successfully held current levels after the US inflation shock sparked weakness in risk assets.
Read more: The future and prediction of Bitcoin price in 2022
Bitcoin’s new uptrend
The classic scenario of breakouts and fakeouts with little liquidity can determine the direction of Bitcoin until the end of the week. Looking at the orderbook information of the Binance exchange, the world’s largest exchange in terms of trading volume, we will see that the bulls are trying to break the heavy resistance of $22,000 in Bitcoin.
There is a possibility that Bitcoin could challenge its 200-week moving average (WMA). Bitcoin’s 200-week moving average is like a downtrend line that failed to stop Bitcoin’s price from falling last month. The famous trader and analyst Rekt Capital said about the price behavior of Bitcoin:
It is easy to have a bullish view on the green day and a bearish view on the future of Bitcoin. Bitcoin is still fluctuating between $19,000 and $22,000. This behavior will continue until BTC price breaks through one of these levels.
According to Cointelegraph, the atmosphere in the market set a new record. The longest period of “extreme fear” in the Fear & Greed index has ended. An analyst of the on-chain analysis platform CryptoQuant raised the alarm of a possible sell by monitoring the behavior of miners.
According to Bing Dang, on July 15, about 14,000 bitcoins were transferred from miners’ wallets. This alone doesn’t represent a huge market-wide selloff, but it’s definitely worth tracking. Bing said in part of his speech:
At this stage, we cannot be sure whether the distribution is positive or negative. We have to wait for the next few days to draw conclusions. The new Energy Gravity Model, which examines the cost of producing Bitcoin, announced that miners are likely to be able to pay relatively low amounts of energy and make a profit at BTC’s spot price.
The Bitcoin Energy Gravity Index shows the highest cost of electricity in US dollars ($/kWh) that miners are willing to pay to make a profit. Joe Burnett, creator of this index and BlockWare analyst, added in this regard:
Better timing of Bitcoin price changes can be obtained by using the Bitcoin Energy Gravity indicator. For example, with this indicator, we will know when the price of Bitcoin is too high and when we are approaching the price floor.
What do you think about the start of a new Bitcoin uptrend? Will the market’s biggest cryptocurrency succeed in breaking its major resistance level? Please leave your comments in the comments section duplicate share it.