Swissblock analysis, Bitcoin Dump with 3 controlling causative factors.
The crypto market crash followed by 3 major events including rising inflation and crypto FUD led to liquidations of billions. Swissblock analysis and market insights clearly shows that there is going to be some major lows to be seen yet in bitcoin price. One can see the major supports and resistances on the swissblock charts and can easily predict about the price action.
As per Swissblock analysis and the glassnode, it shows that bitcoin’s
- Net unrealized P/L has entered the capitulation phase.
- Entity-Adjusted dormancy flow has reached its lowest level.
- Puell Multiple is about to enter buy zone
- MVRV Z-score just entered buy zone.
Mining Pressure on bitcoin
Miners are in loss regarding their production cost and price basis. If they sell for a lower price than their production costs, they may have to sell for maintaining liquidity and their mining stations which leads to more selling pressure. Also the electrical cost to produce a bitcoin has represented a price floor in the bitcoin market price. In short, now miners are forced sellers to cover costs.
Swissblock analysis of bitcoin price
At the publication time, bitcoin price is $22,516 with daily indicators of MACD line:-1748 and signal line -1088.Infact as per the analysis, now 20k support is very weak ,only the point 17500-18500 is valid here. That is where its more interesting to come to the area of $13000.If there is not enough liquidity in the area of $17500,then they will go to $13000.
BTC and ETH are both at their respective 200 week moving averages, bottom is likely to be very close and it seems to be marginal new lows on lower timeframes and so the expert opinion says that this is the spot to start acumulating. Regarding the history, BTC has bottomed 4x at the 200ema dating back 2014,probs safe to assume that its a pretty strong level. So as per the past events it is likely that we can wick below it but there are still 5 days left in the week.
Historical association of BTc with EMAs
As per the past events in bitcoin price action involving dumps and EMAS relation, following things has been redeemed by swissblock analysis
- On the first attempt price just touches the SMA and goes up ( happened in Dec2018)
- On second attempt, it wicks below the SMA (in March-2020)
- on third attempt, price closes below(for months) forms new accumulation range.