Bitcoin Struggles to Move Past Its 200-Week Moving Average, More BTC Downside Possible

Altcoins led the pack by Ethereum (ETH) last week Pass by $ 1,500 at the time of pressing. On the other hand, Bitcoin’s performance remains relatively modest!

BTC rose 10% last week, but continues to face strong resistance on a 200-week moving average. Faced with a denial on a 200-week moving average, BTC is currently trading at the $ 22,102 level.

That ki’s 200-week moving average remains a sticky line just for #bitcoin!! pic.twitter.com/VnYSTcOcsT

Lark Davis (@TheCryptoLark) July 19, 2022

If Bitcoin does not violate these levels, it is expected that the trend will soon reverse and profits will be recorded. Now let’s see what some of the on-chain metrics have to suggest in the future.

Bitcoin on-chain metrics

Bitcoin’s current spot price is currently trading below the realized price. Historical trends suggest that this was a period of accumulation of the bear cycle in the past. Considering the previous bear cycle, the average time spent under the realized price is 197 days. Grassnode says it’s just 35 days in the 2022 bear market.

Meanwhile, Glassnode explains that Bitcoin’s MVRV ratio has fallen below 1.0. A low MVRV ratio indicates that the current market price is below the acquisition price of chain investors. Ideally, an MVRV ratio above 1.0 suggests market strength. As a Glassnode I will explain:

The MVRV ratio is currently trading at 0.953 (-4.67% unrealized loss), which is not as deep as the average 0.85 (-15% unrealized loss) seen in previous bear cycles. This may mean that additional downsides and / or integration time is needed to establish the bottom. However, this bear cycle may also indicate that there is more investor support.

Popular crypto market analyst Lark Davis calls this the Bear Market Rally and suggests to followers to close their position after a few recent pumps.In his Twitter post, Davis I have written: “PSA controls your emotions. This is a bear market rally until it is proven in other ways. There are plenty of opportunities to trade and maybe even close some positions. , Step on carefully. “