Bitcoin drops below $21.8K realized price as FOMC spooks markets
Bitcoin (BTC) stuck to its realized price just below $22,000 on July 25 as Wall Street opened with a flat performance.
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it consolidated after falling from $23,000 overnight.
The pair echoed equities in cool trading prior to the July 27 United States Federal Reserve decision on interest rates. Analysts were expecting several days of volatility, and despite buyer interest in Bitcoin being strong below spot price, everything could still change.
No guarantee any support holds after Wednesday's #FED announcement, but for now #FireCharts shows a ladder of #Bitcoin bids around these next technical support levels. https://t.co/Ng2Rqc0Op7 pic.twitter.com/W6veJMS2YJ
“Big week ahead for the markets,” Umar Ashraf, founder of trading tool TradeZella, forecast.
With traders primed for reactions, Bitcoin became unsettled by struggling to hold any of its 200-week moving averages (MA), 50-day MAs or realized prices, these lying at $22,700, $22,200 and $21,850, respectively.
The last of these, the price at which the average Bitcoin last moved, had been reclaimed as support just a week prior.
Comparing realized price behavior this year to previous bear market years, analyst Root warned that the next step could be another extended dive below the trendline.
Cycle comparison: either we find support here or we might get another arch below realized price like in 2014.Macro might indicate the latter.#Bitcoin #onchain pic.twitter.com/zfphUK2mzv
Adopting a more hopeful outlook, meanwhile, PlanB, creator of the stock-to-flow Bitcoin price models, noted that the speed with which Bitcoin bounced above its 200-week MA this month could belie underlying strength absent from similar bear
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