Bitcoin now looking bearish on weekly charts as biggest Grayscale unlock occurs
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Bitcoin is still hanging on to what a number of technical analysts see as its last scrap of support before a fall to US$20,000, but the bearish signs are growing.
At 11.05am AEST, the original cryptocurrency was trading at US$31,672, down 1.4 per cent from yesterday.
An hour earlier, at 10am AEST/midnight UTC time, BTC’s weekly candle closed below its one-week exponential moving average for the first time since April 2020.
“This is an absolutely terrible sign,” analyst Bitcoin Charts wrote on Twitter.
“Nothing is guaranteed, but the momentum is now officially with the bears on the weekly time frame. … We are still trading above the 30k level, so not all hope is lost yet, and yes, it is possible to see a reversal from here. But, it’s just not looking good for us right now and Bitcoin is looking more bearish than bullish from a short to medium-term perspective.”
Kiwi crypto influencer Lark Davis saw it similarly.
Lowest weekly close of 2021 for #bitcoin, we also lost the 50 week EMA and opened the week under the 50 week MA.
C’mon Man… pic.twitter.com/UxA7E78BO2
— Lark Davis (@TheCryptoLark) July 19, 2021
But Bitcoin fund manager Robert Kim was in the minority with a different analysis.
Explain how this looks bearish? pic.twitter.com/nR1g7ssp75
— Taoist Alchemist. Philosophy. Bitcoin Fund Manager (@OTC_Bitcoin) July 18, 2021
The crypto fear and greed was at a 24, indicating “extreme fear,” although up somewhat from the read of 15 on Saturday.
The biggest Grayscale Trust unlock of the month occurred over the weekend, with 16,240 GBTC becoming available to investors to sell on the open market.
While GBTC are shares, not spot Bitcoin, some market participants have argued that the unlock event could be a further headwind for BTC.
I agree. The biggest grayscale unlock has had happened, the remaining one is much smaller, EIP 1559 just around the corner so $eth will get sent.
Keep some $ on the side in case of further bleeding, but this looks like the moment of max opportunity for defi alts especially. https://t.co/cJeV9NrHSZ
— 0xSmith (@0xSmith) July 18, 2021
Of the top 100 coins, just Safemoon and Titanswap were up, by 6.5 and 2.2 per cent, respectively.
Formerly red-hot gaming token Axie Infinity was the worst decliner, falling 18 per cent to a one-week low US$16.79. The ERC-20 token climbed from around US$5 at the start of July to US$28 late last week.
THORChain, Flow, Sushi and Stacks were the only other coins down by double-digits, THORChain following last Friday’s hack that drained A$7 million in crypto from its systems.