ascending sign on the chart; Bitcoin is on the verge of breaking the 200-week moving average

Bitcoin’s daily candle is bullish for the fourth day in a row, and the weekly candle is not far from retracing the 200-week simple moving average. Analysts say Bitcoin’s return above this key level and price stabilization could boost traders’ sentiments somewhat.

To Report Cointelegraph Yesterday, after the end of the trading week on the American stock exchange, which was accompanied by a slight increase in the share prices of US companies, Bitcoin started a new upward movement, which continued to break the resistance of $21,000.

According to market data, Bitcoin is currently hovering somewhere between $21,000 and $22,000, and has so far maintained its uptrend from last week’s low of $19,000. This is despite the fact that the release of the monthly inflation rate in the United States last week shocked financial market investors and made them feel more negative about risky assets than before.

Now that the US stock market is off for the holiday weekend, despite low trading volume, the risk of a price break or trend reversal won’t leave Bitcoin until the weekly candle closes.

Data from the order book of the Binance digital currency exchange shows that an important resistance has formed near $22,000, and buyers need to break through it to continue the uptrend.

The data from the analytical platform Material Indicators (Material Indicators) also shows that there is a possibility that Bitcoin will continue to test the resistance of its 200-week simple moving average ($22,600); One of the key trend lines of the recent one-month bear market has lost support.

Rekt Capital, one of the famous analysts active on Twitter, says:

It is easy to want to take a bullish view on the days of the price increase and take a bearish view when the market falls. Bitcoin, however, is still fluctuating between $19,000 and $22,000, and this limited volatility will continue until these levels are broken. Therefore, the movements that are formed in this area are not so important that they can change the sentiments of the market.

Last week, the digital currency market set a record for the longest period of stagnation in the state of “extreme fear”. In other words, this index has been in a state of extreme fear for more than 70 days.

Bitcoin miners are feeling the pressure

One of the analysts of the CryptoQuant platform has warned about their one-off sale by examining the behavior of Bitcoin miners.

This analyst said that on July 15 (July 24), 14,000 bitcoins were deposited from miners’ addresses to digital currency exchanges. While this does not necessarily mean that this amount of Bitcoin has been sold, it is a move worth checking out.

He said about this:

Currently, it cannot be said that the distribution of this amount of Bitcoin is a positive or negative event. Therefore, we have to watch the market movements in the next few days.

A new analytical index called the Energy Gravity Model, which measures the cost of mining Bitcoin, shows that if miners were to make a profit from their activity considering current prices, they would have relatively little ability to pay for energy.

Joe Burnett, creator of this index and BlockWare analyst, says:

Bitcoin’s energy gravity model is actually the maximum electricity price that asset miners of the most up-to-date mining rigs are willing to pay; So, by paying this amount, they will still benefit from Bitcoin mining.

Burnett also said:

You can use this maximum bid to find out when the price of Bitcoin is very high and when it is probably near its bottom.