According to Glassnode, the Bitcoin URPD indicator shows that over 530,000 BTC, or 3.18% of the supply, has changed hands in the $22,400 price range. This area is currently the node with the largest volume, showing investor interest in the key on-chain cost basis of realized price.
The #Bitcoin URPD shows that +530,000 BTC (3.18% of supply) changed hands in the $22,400 price region.
This area is now the highest volume node, showing investor interest in the key on-chain cost basis:
– Realized price: $21,773
– LTH Price Realized: $22,722https://t.co/Uwjn1QgCtg pic.twitter.com/8NGhNCUX7I
— glassnode (@glassnode) August 12, 2022
The $22,400 level is also quite important as it is close to the 200 WMA ($22,877), which Glassnode says has historically been an indicator of bottoming.
At its current price of $24,458, Bitcoin is currently trading above both the realized price, which is $21,773, and the LTH Realized Price, which is $22,722. This represents the average value of the BTC coin supply since the last on-chain transaction.
With BTC prices above the realized price, the near-term outlook has improved as participants are ready to take exposure to the leading cryptocurrency. Total miner balances have dropped by about 4,700 BTC over the past two weeks. This shows that miners overall have taken some exit liquidity during the recent price surge, perhaps to strengthen their balance sheets and manage risk.
To sue
#Bitcoin hash bands remain inverted, meaning residual tensions remain in the mining industry.
However, the faster 30DMA 🟢 is beginning to stabilize, indicating some improvement in miners’ financial conditions.
Diagram: https://t.co/cZrD4U1d8d pic.twitter.com/CsQrc8BsXG
— glassnode (@glassnode) August 12, 2022
The fact that the Bitcoin hash bands are still inverted suggests that there is still stress in the mining sector. However, the faster 30 DMA is beginning to stabilize, suggesting that miners’ financial health may be improving. Miner stress peaked in June when BTC prices fell below $20,000. Glassnode notes that the distribution of miners on exchanges has decreased significantly recently, suggesting that while the stress in the industry is still there, “the worst may be behind us.”
Bitcoin “forms” another base
According to Fidelity’s Jurrien Timmer, “Bitcoin is trying to form another base and so far it looks like a good one.”
Bitcoin is trying to form another base and so far it looks like a good one. pic.twitter.com/VOh9VRY6yf
— Jurrien Timmer (@TimmerFidelity) August 12, 2022
Bitcoin’s price is staging a relief rally, bringing it closer to $25,000, but it remains weighed down by longer-term macro indicators, suggesting that more time may be needed to establish a solid base.
Some simple moving averages have shown relevance to bitcoin price action over time, according to Glassnode. The 200 WMA (Weekly Moving Average), currently at $22,877, has historically served as a sign of the beginning of a bottom. The key transition barrier between macro bull and macro bear market momentum remains the 200 DMA (daily moving average) around $33,000.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.