Crypto experts opine that Bitcoin (BTC) would have to topple the $22,500 for a chance in the reclamation of the 200-week moving average as support.
Following a dramatic drop last weekend, the Bitcoin (BTC) price has surged beyond $20,000. BTC encountered resistance on Tuesday as it sought to break through $21,500 and has subsequently retraced.
Bitcoin is currently trading at $20,474 with a market worth of $390 billion as of press time. To maintain its upward momentum, Bitcoin must recapture its 200-week moving average of $22,500 and convert it into support.
Rekt Capital, a cryptocurrency market analyst, adds: “If BTC cannot retake the 200-week MA as support… Then one of the possible outcomes would be a drop to new lows before the creation of an Accumulation Range for the first time below the 200-week MA.”
Bitcoin miner desperation is at an all-time high. Bitcoin miners sold roughly 9000 BTC last week to fund their operating costs. The miner to exchange flow increased dramatically. “Miners capitulating is a sign that you want to see in bear markets,” says popular Twitter handle @OnChainCollege. It could take months and more deterioration to reach that bottom.”
Bitcoin Supply At Exchanges
On the plus side, according to on-chain data company Santiment, Bitcoin supply at exchanges is at a 3.5-year low. The data provider continues:
“The ratio of #Bitcoin‘s supply continues to stay low at levels last seen in November 2018. This is a good signal of limited future selloff risk. In the meantime, supply continues skyrocketing on to exchanges, indicating greater buying power”.
The fact that BTC is currently trading at a 70% discount to its all-time high is a favorable sign for long-term investors to stock up. Rather than waiting for the exact bottom, long-term investors should begin Dollar Cost Averaging today to earn healthy profits four years from now. It will be interesting to see how long Bitcoin can maintain its $20,000 support levels.
