Bitcoin Price Hovers Between Technical Analysis Models, Tether Seen as Safe Haven

03/17/2023 12:34 • Tech Trends • 86 views

According to reports, according to data disclosed by blockchain analysis company Glassnode, recently, the price of Bitcoin hovered between several popular and widely observed technical analysis pricing models. After hitting the resistance of the 200 week and 365 day moving averages (about 25.0k) in February, the price hit the 200 day and 111 day moving averages (about 19800) this week and then rebounded. This is the first cycle in history for BTC to trade below the 200 week average, From this perspective, the market is in a new area. In addition, Glassnode data shows that Tether was always at a premium of $1.01 to $1.03 during the collapse of banks in Silicon Valley, which means that Tether is seen as a safe haven amid concerns that the US banking industry is subject to strict regulation.

Glassnode: The first time in Bitcoin history that a transaction cycle occurs below the 200 week moving average

Analysis based on this information:

According to Glassnode, a blockchain analysis company, the price of Bitcoin has been hovering between several technical analysis pricing models. Bitcoin’s price reached its resistance level of 200 week and 365 day moving averages around 25 thousand USD in February. However, this week, Bitcoin’s price hit the 200 day and 111 day moving averages around 19800 USD and rebounded. This is the first time BTC has traded below the 200 week average, indicating a new market trend.

Technical analysis is a widely used trading methodology in the cryptocurrency market which involves the analysis of historical price trends and trading volume indicators to predict future market movements. The moving averages are one of the most popular technical analysis pricing models which smooth out price fluctuations and provide insights into the overall trend of the market.

Moreover, Glassnode data suggests that Tether, a stablecoin pegged to the US dollar, has maintained its premium price range of $1.01 to $1.03 amid the recent collapse of banks in Silicon Valley. This indicates that Tether is considered a safe haven asset compared to traditional banking institutions that are subject to strict regulations.

Overall, the recent price movements in Bitcoin and the safety benefits of Tether illustrate how cryptocurrencies are gaining mainstream acceptance as a legitimate investment asset class. With the increasing use of blockchain analysis tools, traders and investors are becoming more informed about market trends, leading to a more efficient market pricing system. Additionally, the widespread adoption of stablecoins such as Tether has increased the stability and liquidity of the cryptocurrency market, making it a more attractive investment option for institutional investors.

In conclusion, the recent price movements in Bitcoin and the growing demand for stablecoin demonstrates the increasing maturity of the cryptocurrency market. As more institutional investors enter the market, we can expect to see more efficient market pricing, improved liquidity, and a greater diversification of investment options.

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