Bitcoin (BTC) is staging a repeat of the price action since May with its latest drop, the latest data shows.
As the dust settles on a 6% drop for BTC/USD, analysis argues that its ride to $25,000 was never meant to last.
The realized price reappears on the BTC chart
After surprising some with its magnitude, the latest flash losses for BTC price action are still unfolding.
After falling from $23,800 to $21,400 in a single hour, the largest cryptocurrency is now trying to establish support near its realized price.
Just below $22,000, the realized price refers to the total sum at which the entire BTC supply was last moved.
The setup will be more than familiar to many market participants as realized price formed an initial support line during Bitcoin’s decline in May, immediately after the Terra LUNA blowout.
With history rhyming, at least on the chart, it remains to be seen if other recent points of interest will continue to play their part.
Among them is the 200-week moving average (MA), a hard-won support level in July that is now seemingly lost in one fell swoop.
The 50-day MA, settled in late July, is now also above the spot price again at $22,260.
$22k was the June high and now the #50DMAwhich seems to hold as support so far
— venturef◎undΞr (@venturefounder) August 19, 2022
Going into the open on Wall Street, US stock futures showed more downside to come, implying more pressure on crypto markets.
Active addresses do not support breaking
Meanwhile, a look at the growth in network activity during the August run to over $25,000 produced bearish conclusions for analyst Philip Swift.
Related: Bitcoin ‘Cheer’ Is Lowest Since 2021 Amid New 5-Year BTC Hodl Record
in a new tweet Back in the day, the creator of analytics resource Look Into Bitcoin noted that address growth had not coincided with similar phases of price appreciation this time around.
“AASI (Active Address Sentiment Indicator) has been indicating that the current price movement has not been supported by a sufficient increase in active addresses on the Bitcoin network,” he summarized.
“Experienced local highs when this has happened before.”
This is despite the total number of Bitcoin addresses ever created. passing 1 billion this week, according to data from on-chain analytics firm Glassnode.
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