Bitcoin (BTC) is staging a repeat of price action from May with its latest drop, the latest data shows.
As the dust settles on a 6% comedown for BTC/USD, analysis argues that its trip to $25,000 was never meant to last.
After taking some by surprise with its magnitude, the latest snap losses for BTC price action are still playing out.
After falling from $23,800 to as low as $21,400 in a single hour, the largest cryptocurrency is now attempting to establish support near its realized price.
At just below $22,000, realized price refers to the sum total at which the entire BTC supply last moved.
The setup will be more than familiar to many market participants, as realized price formed an initial support line during Bitcoin’s descent in May, immediately following the Terra LUNA blowout.
Bitcoin realized price chart. Source: Glassnode
With history rhyming — at least on the chart — it remains to be seen whether other recent points of interest will continue to play their role.
Among them is the 200-week moving average (MA), a hard-won support level in July now seemingly lost in one fell swoop.
The 50-day MA, cleared in late July, is now also back above spot price at $22,260.
#Bitcoin made a nice relief rally in the past 2 weeks, but the bearish #RSI divergence has always been in the background.
$22k was June high and now the #50DMA, which seems to hold as support so far
If #BTC breaks below $22k again, I think it's likely we see the $18k low again. pic.twitter.com/0xwArqUcUN
— venturef◎undΞr (@venturefounder) August 19, 2022
Going into the Wall Street open, United States equities futures showed that more downside was to come, implying more pressure on crypto markets.
A look at network activity growth during the August run to over $25,000 meanwhile produced bearish conclusions for analyst Philip Swift.
Related: Bitcoin 'liveliness' lowest since 2021 amid new 5-year BTC hodl record
In a fresh tweet on the day, the creator of analytics resource Look Into Bitcoin noted that address growth had not matched similar price appreciation phases this time around.
"AASI (Active Address Sentiment Indicator) has been indicating that the current price move has not been supported by a sufficient increase in active addresses on the Bitcoin network," he summarized.
"Experienced local highs when this has happened previously."
Bitcoin AASI (Active Address Sentiment Indicator) annotated chart. Source: Philip Swift/ Twitter
This comes despite the total number of Bitcoin addresses ever created passing 1 billion this week, according to data from on-chain analytics firm Glassnode.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Decrypt, a prominent crypto news company, and Rug Radio, a decentralised media platform, have set the stage for a significant merger, promising to reshape the landscape of decentralised media. The alliance, set to form a new entity codenamed [REDACTED], aims to revolutionise the intersection of technology and media creation, leveraging the strengths of both organisations.
JoyOn June 20, 2023, X-Spot submitted an application for an injunction to the Hong Kong High Court, seeking to compel Huobo Global to cease its trademark infringement.
BrianJavier Milei assumes Argentina's presidency, promising radical economic reform amidst a severe crisis, reflecting the nation's hope for a transformative libertarian approach.
YouQuanTaiwan's central bank wraps up wholesale CBDC study, eyes cautious implementation in the era of 'Banking 4.0'.
Hui XinEurope's Artificial Intelligence Act marks a historic step, introducing stringent regulations for ethical and responsible AI usage, balancing innovation with fundamental rights protection.
YouQuanHTX, the digital-asset trading platform associated with industry figure Justin Sun, witnessed a considerable $258 million net outflow following its reactivation after a significant security breach. Data from DefiLlama between November 25 and December 10 showcased the funds departing the exchange, signifying unease among some clients due to the prior security incident. HTX encountered a $30 million loss in crypto tokens during the breach, prompting temporary suspension of withdrawals and deposits as a precautionary measure.
Joy3.6 million, or 6% of the total supply of 60 million BCUT tokens will be offered at a rate of 0.055 USDT per token.
BrianGraphika's report reveals a 2,408% rise in AI undressing, sparking global concerns and calls for regulatory action against synthetic explicit content.
Hui XinThe European Union (EU) achieved a breakthrough on the AI Act, establishing a comprehensive legal framework governing the use of artificial intelligence within its jurisdictions. This pivotal agreement aims to regulate AI's deployment across various sectors and sets distinctive guidelines for different categories of AI systems.
JoyChina's Central Bank is reducing US dollar holdings, a strategic shift to strengthen the Yuan and challenge the dollar's global dominance in a move that could reshape international financial power dynamics.
YouQuan