Chart of The Day: Bitcoin Struggles to Maintain 20k Price Level and Its 200 Weekly MA
- For the fourth consecutive week, BTC has closed below its 200 weekly moving average. Historically, this has marked previous market bottoms. However, this is the longest BTC has remained below its 200 weekly average, surpassing even the Covid capitulation of March 2020.
- Bitcoin’s weekly correlation coefficient continues to remain inversely related to the US Dollar as it hit a 17-month low of -0.77. On the other hand, BTC continues its strong correlation with the Nasdaq Composite — closing at 0.78 for the week ending 7/3/2022.
- With prices continuing to fall, the number of BTC addresses accumulating BTC continues to rise. Addresses holding at least one BTC have reached a new all-time high of 877,501.
- For more on Bitcoin and overall market outlooks, you can reference one of our Market Insight reports here.
It’s All Just Volatility
[Excerpt from a Delphi Insights Report]
- It has been several weeks since we’ve revisited the high time frame market structure chart as it pertains to bitcoin. Given the events that have transpired, it is important to see what damage has been done.
- During the LUNA/UST collapse in May 2022, BTC found itself clinging to yearly support in the region of $28K-$30K. After a few weeks of battle, the bears came out triumphant. We then saw several more devastating events take place within the crypto industry, culminating with 3AC being liquidated across several counterparties with the full extent of the damage still not entirely clear. These liquidation events placed immense pressure on an already fragile market, resulting in another 35%-40% drawdown in BTC, and decimating many alt-coins in the process (again).
- Bitcoin now finds itself struggling to hold the 2017 ATH levels, much in the same way that ETH failed to make much of an impression when it found itself flirting with these same levels a few weeks ago. We can see the liquidation events which caused BTC price to slip through the low volume void from $28K-$20K in a matter of days, with minimal pushback.
- The global credit impulse is the rate of change in credit flow within the economy. It measures how easy or tight credit conditions are and the change over time. This is extremely important as asset prices generally benefit from easy credit conditions. The monetary policy stance is similar in that it is all about the rate of monetary change and how that stands against the prevailing consensus expectations.
- We currently find ourselves in the middle of a slowing credit environment and tightening monetary environment. This corresponds with the lower left quadrant, which coincidentally has a poor outlook for risk assets…a macro-driven bear market indeed.
- For more information, Delphi members can see the full Delphi Insights Report here.
Is The Future of Blockchain Interoperability Optimistic?
[Excerpt from a Delphi Podcast]
- In this episode, we sit down with Anna Carroll (Protocol Lead at Nomad) and Arjun Bhuptani (Founder of Connext) to discuss the blockchain interoperability trilemma, bridge architectures, Nomad’s optimistic design, and much more.
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- For more, you can see our latest Delphi Podcast releases here.
Notable Tweets
Binance Detects Massive Data Breach?
Our threat intelligence detected 1 billion resident records for sell in the dark web, including name, address, national id, mobile, police and medical records from one asian country. Likely due to a bug in an Elastic Search deployment by a gov agency. This has impact on …
— CZ Binance (@cz_binance) July 3, 2022
Huobi Founder Selling Personal Stake
EXCLUSIVE: Huobi founder Li Lin is looking to sell his stake in Huobi. Li Lin currently holds more than 50% of the shares. The second largest shareholder of Huobi is Sequoia China. Huobi’s revenue plummeted after it wiped out all Chinese users and is laying off staff.
— Wu Blockchain (@WuBlockchain) July 1, 2022
Celsius Continues to Lower Liquidation Price
BIG NEWS #Celsius continues to paid down their #BTC vault (loan). After another $50 million repayment, their new liquidation price is $8,840! #Crypto #Bitcoin
— Plan C (@TheRealPlanC) July 4, 2022
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