MMCrypto, a crypto enthusiast, also feels Bitcoin is severely undervalued. “Bitcoin is severely undervalued right now. It is at the same price like 4.5 years ago. And the currency supply has doubled.”
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According to On-chain analytics site Glassnode, this past week saw a total BTC outflow of 108,200 BTC exactly. This is valued at over $2.2 billion and this huge sum was taken off major crypto exchanges.
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Crypto market analyst Rekt Capital further explains: “If BTC can’t reclaim the 200-week MA as support… Then one of the scenarios of what could happen would involve downside to new lows before the formation of an Accumulation Range for the first time below the 200-week MA”.
Don't get excited about #Bitcoin being back above $20K. 20 is the new 30. This is just another bull trap. Nothing drops in a straight line. In fact, this slow motion crash has been extremely orderly. No sign yet of any capitulation that typically forms a bear market bottom.
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Panic has spread all across the crypto market making investors uncomfortable about the recent downside. El Salvador President Nayib Bukele has asked to take a chill pill and maintain patience in such testing times. In a message on Twitter, President Bukele wrote:
I see that some people are worried or anxious about the #Bitcoin market price.
My advice: stop looking at the graph and enjoy life. If you invested in #BTC your investment is safe and its value will immensely grow after the bear market.
Patience is the key.
This week is turning out to be a nightmare for BTC enthusiasts who are already stressed with negative price action. On Saturday, BTC looks to have potentially opened doors for a new bottom after dropping to the $19000 level. The new BTC mining data also support the same sentiment
Data from on-chain analytics firm Coinmetrics shows that a net 88,000 Bitcoin ($1.7 billion) was sent to exchanges from major miners to exchanges- a record-high figure. Moving tokens onto an exchange usually precedes a sale.
When the crypto market crashed last month due to the Terra fallout, many predicted a steep fall in BTC’s price. As the price was hovering around the $30,000 mark, speculation was rife that it would further fall to $20,000 level. This week, the BTC weekly average is in question.
As of press time, Bitcoin is trading 2% up at a price of $22,423, however, it still remains 25% down on the weekly charts. As per crypto analyst Rekt Capital, Bitcoin might be entering a multi-month consolidation phase. The analyst wrote:
If #BTC continues to hold the orange 200-week MA as support and the black 200-week EMA figures as resistance...
$BTC could form an Accumulation Range here, just like in 2018
This would enable multi-month consolidation to even as far as December 2022
#Crypto#Bitcoin