Weekly Bitcoin Highlights (2022.07.22)

"Whale moves, and crossing the Realized Price"

This week we have observed one of the largest bitcoin whales move half of its balance, which started a negative sentiment in the market. According to Ki Young Ju's wallet tracking analysis, this transaction likely occurred in the Gemini exchange. Hence, it was an internal transfer, and no selling pressure due to this transaction.

Since June 13, bitcoin had been trading under the realized price, which refers to a possible market bottom. While it stayed under this threshold for 20 weeks between November 2018 - April 2019, it was traded for just a week in March 2020. However, we should not forget that a quick rebound in March 2020 was related to the Central Banks' unprecedented response (QE) to COVID shutdowns.

Due to a sharp increase in the last two days, bitcoin has been trading above the realized price. The question is whether it would stay over this threshold and use it as a support level or drop below this line again.