The Bitcoin (BTC) market has faced ups and downs so far this year. After breaking the previous record of $ 20,000 in December 2020, the major cryptocurrency climbed to the heights from a twelve-year journey after hitting $ 64.8k in mid-April.
However, a strong correction was imminent as it pushed the price of Bitcoin to lows of $ 30k on May 19.
The BTC price drop had first plummeted below the 200-day moving average (MA) since March 2020, as the coronavirus pandemic caused a state of turmoil globally.
Bitcoin inflows on crypto exchanges have dropped to a 5-month low, as Glassnode acknowledged. The chain metrics provider explained:
“The number of Bitcoin exchange deposits (7d MA) just hit a 5-month low of 2,518,137.”
A low increase in exchange entries means a culture of retention because more users keep their cryptocurrencies in cold storage for speculative or future purposes.
The $ 30k level has become important to many investors
Yann & Jan, co-founders of Glassnode, revealed that they recently posted the highest realized daily losses in the history of Bitcoin at $ 4.5 billion. They stated:
“The highest daily losses in history. This shows how many investors support the 30k Bitcoin level. A currency realizes a loss if the price in its last move was higher than the price of its current move. “
Bitcoin was trading at $ 39k at the time of this writing, according to CoinMarketCap. An analysis by CryptoHamster recently revealed that BTC should trade above the $ 34,000 level for a bullish divergence, creating a signal of the end of the latest downtrend.
With Bitcoin forming an inverse head and shoulders pattern with a target of $ 49,000 as alluded to by market analyst Carl Martin, it remains to be seen if this will mean a reversal pattern to the upside.
BTC also recently approached the 200-day MA, and if it closes above this line, which shows the average closing price of the last 200 days or roughly 40 trading weeks, an uptrend is likely to trigger.
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