Bitcoin breaks the $30,000 mark, and…
Last weekend, according to the data Coinmarketrate.com, the price of Bitcoin recovered after the collapse to $31,300, but it was rejected there and fell again to the area of about $30k. However, Bitcoin barely held on even there, falling to 29,000 on Wednesday and even briefly falling below this mark.
On Thursday, the price was able to rebound, but was rejected at around $30,500, and then dropped back below $29,000. Yesterday, the price initially recovered, but did not go beyond $30,600.
The price movement of BTC. Source: Coinmarketrate.com
Last night, Bitcoin dropped below the $30k mark twice, and then recovered to $30,300.
Fear and panic
According to the website Alternative.me , the market arrives at the level of extreme, extreme fear.
Where is the bottom of Bitcoin?
The price gains earlier this week ended when equity markets like the S&P 500 turned red again. Although the correlation between these two markets has decreased slightly in recent days, it is still very high.
Therefore, macroeconomic events are likely to continue to determine the direction of the BTC price in the coming period. If the stock markets open in the red on Monday, there is a chance that Bitcoin will pull down again. There is still a big lack of demand and volume in this uncertain market.
The S&P 500 has officially entered a bear market. Source: Fintwit
Analysts still disagree on where the possible bottom is for the Bitcoin price. Of course, it is possible that we will see another retest of the recent $27,000 level, but if macroeconomics does not cooperate, it will not be a big surprise if the BTC even tests the area between $20k and $24k.
Source: venturefounder
The 200-week exponential moving average is now at $27,000, and the 200-week simple moving average is at $22,000. In terms of growth, Bitcoin first needs to break through the 31,350 mark.
The outflow of miners is weakening
The analytical company Glassnode reports that the outflow of Bitcoin among miners has reached a monthly low. This indicator shows how much BTC flows out of miners’ wallets. A large outflow may mean that they are selling more coins, which is a bearish factor.
At the same time, it can be seen that the volume of transactions on the Bitcoin network has not been as low as it is now over the past four months. This indicator has been in a strong upward trend since April of this year – a period when the price of BTC declined significantly.
Finally, a tweet by an analyst at Byzantine General. He dared to declare that the price has found its bottom here.
Source: Byzantine General
He bases this on the fact that prices in different markets can differ significantly from each other, and the greater these differences, the greater the “coverage”, according to the analyst:
“There is a bottom. The market has not experienced such disruptions since March 12, 2020. “Upset” = the difference between prices in different markets due to rectification.”
Of course, it should be said here that in the end no one knows where the bottom will be. On the contrary, many other analysts predict a further decline, especially given the current situation in the world. Given Bitcoin’s high correlation with stock markets, a drop in them could cause an even bigger drop.