057: BITCOIN PRICE JUMPED 42% LAST TIME IT HIT THIS LEVEL! | BTC Price Analysis

Late last month, the Bitcoin price saw a jaw-dropping trading session, with the BTC price gaining 42% in a 24-hour time frame; this was Bitcoin’s best daily performance in over six years. This move, which brought the asset from $7,300 to $10,500, shocked many, with many seeing the surge as entirely non-sensical.

Though, retrospective analysis has shown that $7,300 was the price of the 200-day moving average on the CME futures market at that time, making the 42% bounce extremely peculiar. While there is no guarantee a bounce will happen again, according to this BTC price analysis, Bitcoin is yet again knocking on the door of the 200-day moving average on the CME’s chart. What do analysts expect to happen this time around?

Bitcoin has declined below the psychological level of $8,000 for the first time since October 25. Interestingly, the trading volume on Bitcoin futures exchange Bakkt is increasing, which suggests that institutional investors are happy to enter the market at lower prices. One of the possible reasons behind the ongoing decline is the so-called mining capitulation.

The phenomenon was discussed in detail by crypto analyst Cole Garner, who argued that small miners are forced to giving up on the process as it becomes too expensive for them. The gradual exit of unhappy miners could soon end up in a massive sell-off that could drag the Bitcoin price to new lows that were unthinkable last summer.