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‘Too early’ to say Bitcoin price has reclaimed key bear market support — analysis

Bitcoin(BTC), climbed higher after the June 14 Wall Street open as analysts hoped that long-term support  had been preserved.

'Too early' to say Bitcoin price has reclaimed key bear market support — analysis 3

BTC/USD 1-hour candle charts (Bitstamp). SourceTradingView

HopesFOMC meeting: “Relief”

DataFrom Cointelegraph Markets Pro and TradingView followed BTC/USD as it traded above $22,500 at the time of writing, having hit local highs of $23,300 on the day.

TheThe pair had experienced a strong bounce following close to $20,800. Traditional markets were also recovering from panic. United States inflation.

EyeingWhere BitcoinCould be next, on-chain analytics resource Material IndicatorsThe market had reclaimed the 200-day moving average (200 MA), which was an important feature of BitcoinSupportive markets such as bear markets have been present throughout previous price cycles.

NonethelessAccording to a tweet, it was “too young to know” if the 200 SMA would provide an attractive area, with the Federal ReserveInflation cues are provided June 15.

#BTC just claimed the 200 Week MA. SomeAlthough there was some liquidity in #FireCharts, it was not enough to know if it will continue. ExpectAll eyes on #FOMC conference Wednesday. pic.twitter.com/OEV18iTSrD

— Material Indicators (@MI_Algos) June 14, 2022

KeepingThe Fed in mind were most crypto social media commentators, as expectations showed that the majority now favored an outsized rate hike next — 75 basis points instead of 50.

Tomorrow’s FOMC expectations are weighted heavily towards extreme 150-175 bps rate hikes pic.twitter.com/l5EW64mnvP

— CRYPTO₿IRB (@crypto_birb) June 14, 2022

“CurrentlyThe market predicts that 96% of the respondents will be successful. FedGet a 75bps bump on Wednesday. TheThe market had been pricing in a 50bps increase recently, but the hot inflation data last week changed that sentiment. (ThisTime last week, a 75bps increase was given a 4% chance of happening).” popular Twitter@tedtalksmacro tweeted one of a series on the day.

HeAdditionally, a 50-point rise in crypto and stocks would mean both “should rally really hard,” while volatility would be mimicked by a “sell rumor, purchase the news” event.

“MaybeThey provide some relief.” Decentrader co-founder FilbfilbHe agreed in his own post.

TimeTo buy, says metric in metric in green for the first-time since $3,600

MeanwhileThe excitement over an on-chain measurement reaching the “buy” zone for the first and only time since 1993 was palpable March 2020.

Related: ‘Nothing issue’ — MicroStrategy CEO plans to hodl Bitcoin ‘through adversity’

TheMVRVZ score, which is an expression how many standard deviations spot market price is from realized price, returned back to negative territory when BTC/USD plunged below $23,400.

MVRVZ has historically gotten the generation price bottoms of BitcoinIt has also produced significant returns by buying in its green area.

CointelegraphThe significance of Bitcoin’sRealized price earlier in week

'Too early' to say Bitcoin price has reclaimed key bear market support — analysis 5

BitcoinMVRV-Z score chart. Source: Glassnode

TheThese views and opinions are solely the author’s and do not necessarily reflect those of Cointelegraph.com. EveryInvesting and trading involve risk. Before making a decision, it is important to do your research.


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