Bitcoin, the world’s largest cryptocurrency, has had a volatile week (BTC). On the other hand, BTC has registered the first weekly green candle in nearly three months.
As of press time, Bitcoin is trading 4% higher at R475564, with a market cap of R9B. Bitcoin is up 2.32% on a weekly basis. However, while this may provide some relief to Bitcoin investors in the short term, it does not indicate a trend reversal. Some analysts believe that this is just a bear market rally and that we will see more corrections in the future.
According to the technical chart, Bitcoin is still trading significantly above its 200-day moving average (DMA). BTC has historically bottomed around the 200 DMA or just below, which is 25% lower than current levels. Rekt Capital, a well-known cryptocurrency analyst, explains:
“BTC has historically bottomed at, near, or just below the 200-week MA (orange). To bottom at the 200 MA, $BTC would need to drop an additional -25 % from current prices. “
On-chain Bitcoin (BTC) Distribution
According to Glassnode data, Bitcoin miners have been selling aggressively during the recent market correction. According to the data provider:
“Bitcoin miners have been net distributors since the recent sell-off.” Miners’ balances have recently declined at a peak rate of 5k to 8k $BTC per month (R2.3B to R3.7B at R46, 0467 $BTC). Their spending has slowed this week to 3.3k $BTC/mth”.