Bitcoing (BTC) Drops Below Key Level as Diamond Hands Wiggle
Bitcoin Trading below the key psychological level on Monday evening, while other major currencies also fell, with the global cryptocurrency market down 4.05% to $888.7 billion at press time.
|Currency||24 hours||7 days||price|
|Bitcoin Bitcoin / US Dollar||-3.9%||-1.3%||1998$1.91|
|Ethereum ETH / USD||-6%||-4.8%||1097.13 dollars|
|Dogecoin DOGE / USD||-7.7%||-11.2%||0.06 dollars|
|Cryptocurrency||Change by 24 hours (+/-)||price|
|Arrow (EN)||+ 3.9%||12.02 USD|
|episode (LRC)||+ 1.35%||$0.11|
|Day (DAI)||+ 0%||1 dollar|
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why does it matter: Bitcoin traded below the $20,000 mark, while Ethereum was about to slide below $1,000 at press time as sentiment around risky assets deteriorated once again.
Cryptocurrencies tracked weak stocks on Monday, with the major US indexes S&P 500 and Nasdaq closing down 1.15% and 2.26%.
However, S&P 500 and Nasdaq futures were up 0.04% and 0.01%, respectively, ahead of earnings announcements from major companies.
“Another rush into the bear market has come and gone, and we now head into earnings season and another week of major economic reports fearful of what might lie ahead. Midweek US inflation data is a top spot, as investors cross their fingers for signs of slowing prices.” OANDA Senior Market Analyst Craig Erlam, In a note seen by Benzinga.
Erlam Fellow at OANDA, Edward Moya He said that Bitcoin’s latest bearish cycle is close to testing “the historically known dips of 80% that we will see in previous crypto winters.”
“It looks like the $14,000 level could provide significant support if bitcoin breaks later this week. This week’s inflation report could be the reason for the cryptocurrency’s recent big drop.”
The US dollar continued to strengthen as expectations of a rate hike rose again. At press time, the dollar index – a measure of the dollar’s strength against six of its peers – had risen to 108.19.
Cryptocurrency Dealer Justin Bennett He warned on Twitter that people should stop trying to call the tops of the dollar index, saying the signals are at 120 for the index. Bennett commented on the inverse relationship between cryptocurrencies and the dollar in the past.
To whom it May concern:
Please stop trying to connect DXY Dollars tops.
– Justin Bennett (@JustinBennettFX) 11 July 2022
my neighbor Ali Martinez He said that Bitcoin has fallen below its 100-hour moving average to $19,900 levels, and if these levels fail, losses could extend towards $19,300 or even $18,630.
# bitcoin It fell below the 100-hourly moving average, which led to a drop to $19,900.
– Ali Martinez (@ali_charts) 11 July 2022
On-chain analysis company glass He said in a note that The owner of production in the long run spent the profit rate of production (LTH-SOPR), which indicates the percentage of profit that has been recorded by Bitcoin holders in the long term, shows that the so-called diamond hands are hurting.
An LTH-SOPR value of 2.0 means that long-term holders of coins are spending coins at 2x the cost basis, while a value of less than 1.0 means that investors realize losses or spend coins at below cost basis.
Bitcoin LTH-SOPR (30-Day Moving Average) – Courtesy of Glassnode
“LTH-SOPR is currently trading at 0.67, which indicates that the average LTH spender of their coins is losing 33%,” Glassnode said.
While severe financial pressures and a “widespread footprint of capitulation” can be observed, Glasnod said, “there may still be a combination of time (duration) pain, and possibly more downside risks to fully test investor resolve, enabling the market to establish a resilient bottom.”
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