Will BTC Retest its 2020 Lows? – crypto.news
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Bitcoin price is in a tight range following the Fed’s monetary policy announcement. Macro forces are also taking over global markets, which has increased the correlation between different asset classes. BTC is currently trading at $19,025.25, down 1.6% over the past 24 hours and down 6% over the past seven days. Other major cryptocurrencies also experience loss in similar time intervals. The exception is the price of XRP, which has risen 29% in the past week.
Bitcoin price needs more surrender
The recent Ethereum merger and the Bitcoin market have completed various price catalysts in the short term. The market now moves together with traditional and macroeconomic factors.
The combination of these factors may provide an opportunity for a relief rally or further decline in financial markets. According to Jurrien Timmer, director of macro at Fidelity Investments, the S&P 500 is started surrender.
Despite the recent decline, Timmer believes the market is still resilient and can recover. However, he pointed out that more dedication is needed to reach the bottom. Through Twitterthe expert added:
“It is surprising how little surrender there has been in the market. Yes, the polls are all negative, but the actual flows have not been. This appears to be consistent with market volatility.”
According to analyst Dylan LeClair, Bitcoin is ingress bottom after the mining industry surrendered. He believes this could cause a crash in the network’s hashrates. However, he pointed out that the exact cause of the accident is not yet known. LeClair also believes that macroeconomic conditions will trigger another cycle like the previous one.
Is Bitcoin Ready To Retest Its 2020 Bottom?
Bitcoin is trading 80% lower than its all-time high of $69,000. This suggests that the price of the cryptocurrency may have bottomed out. It has formed a resistance against future bills.
Although the price of Bitcoin has already bottomed out, there could be more sideways movement in the near future as the Federal Reserve continues to raise interest rates. This could be supported by a possible weakening of the US dollar.
Although the price of Bitcoin has already bottomed out, it may see more sideways movement in the near future as the Federal Reserve continues to raise interest rates. This could be supported by a possible weakening of the US dollar. The DXY index is currently trading above its 20-day moving average and may cause a spike in selling pressure.
Bitcoin’s bottom appears to be within reach
About 30% of Bitcoin long-term holders (LTH) are currently experiencing losses. This is due to a decrease in value from $69,000 in November 2021 to $19,000 today. The amount is about 3-5% below the level at which the bottoms of the Bitcoin market were.
In March 2020, the price of Bitcoin fell below $4,000 as the market crashed due to COVID-19. This happened when LTH’s unprofitable supply increased by about 35%.
The December 2018 low of $3,200 also coincided with a rise in the LTH loss metric to over 32%. Bitcoin was then followed by a bull cycle. During a bear market, the number of LTHs losing money is usually in the 30-40 percent range. Considering that the price of Bitcoin may still fall to around $10,000-$14,000 before reaching the historical bottom zone, some LTHs may still be in the red.
The LTH supply metric, which measures the amount of supply held by long-term investors, also shows that these individuals tend to hold Bitcoin during market downturns and bull markets. This suggests that the next bull market may be triggered by a decline in the overall supply of LTHs.
BTC accumulation is strong
According to Glassnode data, accumulated positions have increased significantly during the current bear market. The meter shows that these addresses have at least two incoming transfers and have not used any funds.
This pattern suggests that despite the current price level, the “HODLers” are still unfazed by the potential impact of the decline. The number of addresses with zero balances has also increased significantly during the current bear market. This shows that the number of non-zero people is increasing.