Bitcoin is trending around its current levels and there is no clear direction on the lower time frame. The cryptocurrency has experienced its worst selling pressure in years, but remains firmly in place at its 2017 all-time high.
Related Reading | Crypto Trading Volume in India Plunge Due to Heavy Taxation, What’s Next?
At the time of writing, bitcoin is trading at $20,140 with a 4% gain over the past 24 hours. As NewsBTC reported yesterday, general sentiment in the market is turning more positive as the Crypto Fear & Greed Index bounced back from extreme fear levels.
According to senior commodity strategist Mike McGlone, the bitcoin and crypto markets are nearing their 2018 decline levels. At the time, the nascent asset class experienced a similar bearish trend, which pushed the price of BTC to lose 75% of its ATH.
At that point, the $3,000 price point acted as a key bottom that saw a period of accumulation for several years. In 2020, when global markets were in turmoil due to the COVID-19 pandemic, BTC once again marked a bottom near $3,000.
After that, the cryptocurrency began a new rise in price discovery. Macro-economic conditions are different this time around, and bitcoin could return to an annual low of around $17,000, but McGlone suggests it has reached a point where long-term holders could benefit in the second half of 2022. Is:
(…) The Bloomberg Galaxy crypto index is nearing a similar decline as its 2018 low and bitcoin’s discount is to the same 50- and 100-week moving averages as previous foundations, we’re looking at risk versus reward for responsible investors in 2H. Look at the tilt.
Since its inception, the price of BTC has historically remained around the previous all-time highs. McGlone claims that $20,000 terms to operate as this pivot support level in 2022 due to a decline in “risk measures” against the traditional market.
A bitcoin worth $20,000 can be viewed as $2 in 2011, $200 in 2015, and $3,000 in 2018. Bitcoin and Ether risk measures versus equities are falling and US regulation (the Lumis-Gillibrand crypto scheme) likely reflects mainstream maturity.
Bitcoin short term outlook showing improvement?
On the shorter time frame, bitcoin has been able to stay above $20,000 despite the decline in traditional markets and the strengthening of the US Dollar. The US currency is approaching a 20-year high as investors continue to hedge risk amid the current macroeconomic conditions.
Data from the Materials Indicator (MI) records around $20 million in bid orders for the BTC price from $20,000 to $19,000. As BTC whales continue to accumulate, these levels should act as support in case of further downside.
Related Reading | TA: Bitcoin Faces Another Rejection, Can Bulls Save the Day
Large BTC investors have been buying into the cryptocurrency’s price action for the past week. 30,000 BTC were added to addresses with 100 to 100,000 BTC in this period.
In the last week, 100 to 10,000 . address addresses $BTC around 30,000. added #B T c 40,000 for their holding while #bitcoin known was withdrawn from #cryptocurrency exchange purse. pic.twitter.com/vRC7cJYvbZ
— Ali Martinez (@ali_charts) 4 July 2022