Bitcoin Price Tests Critical Support Levels

2022-5-14 17:30

The realized price of bitcoin is around $24,000 and a lack of long-term holder capitulation means there is potentially more downside to come.

The below is an excerpt from a recent edition of Bitcoin Magazine Pro, Bitcoin Magazine's premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

In a previous issue, we highlighted that based on the level of realized losses, unrealized losses and capitulation trends in the past, we had yet to see a bear case capitulation play out:

“The key on-chain price areas to watch are still those that make up the cost basis. Currently the market’s realized price is around $24,000 while long-term holders realized price is around $17,000. As short-term holders realize losses, short-term holders realized price has dropped to around $48,000. If we’re to get the long-term holder market capitulation we’ve seen in the past, there’s potentially more downside to come.”

Today, as bitcoin hovers above a critical $28,000 price and technical level, we’ve yet to see major capitulation play out in the broader equities market as bitcoin reaches its all-time highest equity market correlations. The bitcoin bottom will likely come with a broader risk-on asset bottom and will depend on the reversal of tightening financial conditions and fleeting liquidity. 

The bitcoin market value to realized value ratio indicates a cooled, but not yet overcooled period indicative of market capitulation bottoms.

Capitulation-like sell-offs across broader cryptocurrencies, in BTC terms, played out over the last few days with Luna losing 98.76%. High-beta investments relative to bitcoin are getting crushed year-to-date and especially this week as second-order effects of the Terra (UST) blowup ripple through the market. Whether it’s a repricing of protocol risks, forced selling, liquidations and/or damage control from UST and LUNA exposure, the entire market is selling off much worse than bitcoin. 

Crypto assets priced in bitcoin demonstrate negative returns in the double digits.

Although bitcoin was hit in the larger sell-off across the market, all other crypto assets were hit much harder, as shown by the chart above which is using BTC as the benchmark. It is also worth noting that if 2022 brings an extended period of consolidation/bear market price action, the fully diluted market cap of many altcoins is much larger as a percentage of market cap today (i.e., further inflation/dilution of the asset). Monetary properties matter over the long run, which is why we remain laser-focused on the prospects of bitcoin and choose to dismiss other “projects” in the crypto space. 

Subscribe to access the full Bitcoin Magazine Pro newsletter.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Bitcoin (BTC) на Currencies.ru

$ 69888.27 (+1.45%)
Объем 24H $43.723b
Изменеия 24h: 2.28 %, 7d: -2.60 %
Cегодня L: $66916.68 - H: $70054.19
Капитализация $1382.256b Rank 1
Цена в час новости $ 29483.07 (137.05%)

bitcoin price means capitulation holder potentially come

bitcoin price → Результатов: 126


Фото:

Bitcoin’s bullish momentum seeking ‘euphoric’ market shift – Glassnode

Bitcoin (BTC) is showing the first signs of positive price momentum since June, as it attempts to convincingly break the $69,000 price zone and shift to a “euphoric bull market.” According to Glassnode’s latest “Week Onchain Newsletter,” the recent rally has seen Bitcoin’s spot price break through key technical and on-chain price levels, pushing many […] The post Bitcoin’s bullish momentum seeking ‘euphoric’ market shift – Glassnode appeared first on CryptoSlate.

2024-10-24 00:38


Bitcoin Cup And Handle Cascade: Analyst Says BTC Price Could Reach $230,000 If It Follows This Structural Path

A crypto analyst has projected a significant break to the upside for Bitcoin, drawing parallels to similar breakouts in traditional assets in the tune of the Gold and the S&P500. According to a technical analysis of the current price action, Bitcoin is playing out a cup and handle pattern, which could send it surging to bullish price targets above $230,000.

2024-10-22 22:30


Bitcoin Price To $95,000? Here’s What Needs To Happen First

The Bitcoin price has now broken above the $68,000 mark amid a run of a 12% price increase in the past seven days. However, analysis says the Bitcoin price will not stop this surge anytime soon. According to a detailed analysis posted on TradingView, a well-known crypto analyst has shared insights suggesting that Bitcoin is on track to climb even higher to reach an ambitious target of $95,000, but USDT.

2024-10-18 13:00


Bitcoin Poised For Minimum 60% Rally As 3 Critical Signs Align

Henrik Zeberg, a macroeconomist known for his expertise in business cycles, has pinpointed an upcoming rally of at least 60% for the Bitcoin price in his latest technical analysis. The seasoned analyst has identified a pattern across three critical technical indicators that have historically signaled major upward price movements when all aligned.

2024-10-18 11:30