Another space for bitcoin [BTC] This week means this may be the next

As Bitcoin sheds its $20,000 support level on the charts, eyebrows are finally being raised. The market rally we saw in July has been reduced to downtrends in the bitcoin community. The same can also be seen by looking at Bitcoin’s long-standing correlation with the stock market.

Ergo the question – what does the future hold for the flagship token of the cryptocurrency market?

The holders hold on!

Despite macroeconomic uncertainties, the Fed’s recent rate hike took the form of market easing. However, Bitcoin has seen a drop across the market over the past few days. There has also been a sharp drop in the broader market. It is important to emphasize here that such a drawdown was also due to Federal Reserve Chair Powell’s speech.

The indicator below shows the price history of Bitcoin, Nasdaq 100, Gold and Silver over the last month. The Nasdaq 100 is down 6% from its prior month high and has held a 5% return over the past month. On the contrary, Bitcoin fell around 14% from its own peak last month.

This difference between these price movements has caused the correlation between the assets to decrease.

Source: IntoTheBlock

Popular analyst Ali Martinez also recently shared his take on Bitcoin and how it has been performing lately. Following its recent decline, Martinez claimed that Bitcoin lost two “significant supply zones.” One of these costs $21,150 where 1.2 million addresses have bought 635,000 BTC, and another costs a whopping $23,000 where 634,000 addresses are currently holding 684,000 BTC.

The only “significant support” he believes is at $19,200, where over 421,000 addresses have already bought 333,000 BTC.

Now what for BTC?

As the crypto depreciates across the board, merchant profitability has also taken a sharp turn. After some recovery in the first few weeks, MVRV has fallen below the support line.

At the time of writing, MVRV was reading -11.28%, indicating negative returns for Bitcoin traders right now.

Source: Santiment

Simply put, it’s not a good time to hold bitcoin. Only time will tell if better days lie ahead for the world’s largest cryptocurrency.

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