Bitcoin and Ethereum stay below 200 week MA

The price bitcoin is trading down around -$860 or -3.87% at $21,330.

Looking at the weekly chart above, the price moved down to a low yesterday of $20,079 which was near a swing high going back to November 30, 2020 (and close to the natural support at $20,000).

The price bounced off that level, but still remains below its key 200 week moving average. That moving average (green line in the chart above) currently cuts across at $22,358.54.

The price of  bitcoin  Bitcoin Bitcoin is the largest and world’s first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it functions without a central bank or single administrator. Rather, Bitcoin instead can be sent by peer-to-peer (P2P) networking, which is itself absent of any intermediaries.Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received across a kind of distributed ledger network called a blockchain. As Bitcoins are not issued or backed by any governments or central banks, it is considered to be legal tender. Transactions on the Bitcoin network are confirmed by a network of computers (or nodes) that solve a series of complex equations. This process is called Bitcoin mining. In exchange for Bitcoin mining, computers receive rewards in the form of new Bitcoins. Over time, mining grows increasingly difficult, leading subsequent rewards to become smaller and smaller. Given the structure of code, there will only ever be 21 million Bitcoins in existence. However, as of 2020, there were already 18.3 million Bitcoins in circulation. Bitcoin Making HistorySince its launch back in 2009, Bitcoin has remained the most popular and largest cryptocurrency in terms of market cap in the world. Its popularity has also contributed significantly to the release of thousands of other cryptocurrencies, that are now known as altcoins. At its inception, the crypto market was originally hegemonic, though presently the landscape contains countless altcoins.Bitcoin has also been controversial since its original launch. It has been heavily criticized for its use in illegal transactions and money laundering given its decentralized nature.As Bitcoin is impossible to trace, this makes the cryptocurrency an ideal target for illicit behavior. Critics also point to its high electricity consumption for mining, rampant price volatility, and thefts from exchanges. Bitcoin has been seen by some as a speculative bubble given its lack of oversight. Bitcoin is the largest and world’s first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it functions without a central bank or single administrator. Rather, Bitcoin instead can be sent by peer-to-peer (P2P) networking, which is itself absent of any intermediaries.Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received across a kind of distributed ledger network called a blockchain. As Bitcoins are not issued or backed by any governments or central banks, it is considered to be legal tender. Transactions on the Bitcoin network are confirmed by a network of computers (or nodes) that solve a series of complex equations. This process is called Bitcoin mining. In exchange for Bitcoin mining, computers receive rewards in the form of new Bitcoins. Over time, mining grows increasingly difficult, leading subsequent rewards to become smaller and smaller. Given the structure of code, there will only ever be 21 million Bitcoins in existence. However, as of 2020, there were already 18.3 million Bitcoins in circulation. Bitcoin Making HistorySince its launch back in 2009, Bitcoin has remained the most popular and largest cryptocurrency in terms of market cap in the world. Its popularity has also contributed significantly to the release of thousands of other cryptocurrencies, that are now known as altcoins. At its inception, the crypto market was originally hegemonic, though presently the landscape contains countless altcoins.Bitcoin has also been controversial since its original launch. It has been heavily criticized for its use in illegal transactions and money laundering given its decentralized nature.As Bitcoin is impossible to trace, this makes the cryptocurrency an ideal target for illicit behavior. Critics also point to its high electricity consumption for mining, rampant price volatility, and thefts from exchanges. Bitcoin has been seen by some as a speculative bubble given its lack of oversight. Read this Term last moved below that 200 Week Moving Average way back on back in March 2020 at the start of the pandemic. The low price at that time reached $3850. A short 57 days later, the price peaked initially at $64,895. After a sharp decline toward around $26,200, there was a another surge to the upside that saw the digital currency top out at $69,000..

At the low yesterday at $20,079, the price decline from the high was around -71% or down around $-49,000. From peak. Hold on for dear life as they say.

Helping the move to the downside was the Celsius news over the weekend where the crypto currency lender stopped withdrawals. Crypto hedge fund Three Arrow Capital is facing insolvency following the latest crash according to Bloomberg news. You have to wonder if the 2 separate new stories are related. Celsius lends crypto to the "well capitalized" Three Arrow Capital, and then does not get paid interest or get the crypto back.

The 200 week moving average will help tell the story. A move above it at $22,358 is needed to give the buyers some hope. Absent that, and a run toward the $20,000 level would be anticipated.

Take a look at  Ethereum  Ethereum Ethereum is a decentralized, open source, blockchain-based distributed computing platform and operating system. A defining feature of Ethereum is its smart contract functionality, making it extremely popular.Ethereum dates back to 2014 and has since grown in popularity to stand as the second largest cryptocurrency by market cap.As a decentralized cryptocurrency network and software platform, Ethereum represents the most important and widely circulated altcoin. Of note, Ethereum also facilitates the use of Distributed Applications, or dapps. Ethereum possesses its own unique programming language, known as Turing Complete, which is used to build the dapps. Dapps in turn can be run on a peer-to-peer (P2P) network of virtual machines. These can be just about anything and are optimized to run on Smart Contracts, which are pieces of code that can execute a predetermined set of actions once a certain set of criteria are met. The Ethereum network’s native currency is called Ether, or ETH. ETH tokens can be used to pay for things inside of dapps or to receive payouts from smart contracts. They can also be traded off of the Ethereum network inside of cryptocurrency exchanges or OTC trading platforms. The Rise of EthereumEthereum dates back to 2013 when crypto researcher and programmer Vitalik Buterin proposed its utility. Its early development was subsequently funded by an online crowdsale, which took place in 2014.Ethereum ultimately went in July 2015 with 72 million coins minted. This accounted for roughly 65 percent of its total circulating supply at the time of writing.Like other cryptocurrencies, Ethereum has had a complicated past, resulting in splits and some controversy.For example, back in 2016, an exploited vulnerability in The DAO project's smart contract software caused the theft of $50 million worth of Ether.This led Ethereum to split into two separate blockchains. A newer and separate version became known as Ethereum (ETH), while the original chain continued to be known as Ethereum Classic (ETC). Ethereum is a decentralized, open source, blockchain-based distributed computing platform and operating system. A defining feature of Ethereum is its smart contract functionality, making it extremely popular.Ethereum dates back to 2014 and has since grown in popularity to stand as the second largest cryptocurrency by market cap.As a decentralized cryptocurrency network and software platform, Ethereum represents the most important and widely circulated altcoin. Of note, Ethereum also facilitates the use of Distributed Applications, or dapps. Ethereum possesses its own unique programming language, known as Turing Complete, which is used to build the dapps. Dapps in turn can be run on a peer-to-peer (P2P) network of virtual machines. These can be just about anything and are optimized to run on Smart Contracts, which are pieces of code that can execute a predetermined set of actions once a certain set of criteria are met. The Ethereum network’s native currency is called Ether, or ETH. ETH tokens can be used to pay for things inside of dapps or to receive payouts from smart contracts. They can also be traded off of the Ethereum network inside of cryptocurrency exchanges or OTC trading platforms. The Rise of EthereumEthereum dates back to 2013 when crypto researcher and programmer Vitalik Buterin proposed its utility. Its early development was subsequently funded by an online crowdsale, which took place in 2014.Ethereum ultimately went in July 2015 with 72 million coins minted. This accounted for roughly 65 percent of its total circulating supply at the time of writing.Like other cryptocurrencies, Ethereum has had a complicated past, resulting in splits and some controversy.For example, back in 2016, an exploited vulnerability in The DAO project's smart contract software caused the theft of $50 million worth of Ether.This led Ethereum to split into two separate blockchains. A newer and separate version became known as Ethereum (ETH), while the original chain continued to be known as Ethereum Classic (ETC). Read this Term, it too is lower on the day by about -$105 or -8.61% at $1103. Looking at its weekly chart, it too fell below its 200 week moving average this week (see green line in the chart below). That level comes in at $1195.62. The low price extended to $1012.72 yesterday. That was the lowest level since January 11, 2021 (all traders who bought after January 11, 2021 are underwater).

It will now take a move back above the 200 week moving average at $1195.60 to give the buyers some confidence/comfort. Absent that and the sellers remain firm control

Like bitcoin, Ethereum bottomed in March at a price of $100.60. The price peaked in November 2021 at $4867.81. Since then, the price has moved down from the high to the low reached yesterday by -79.2%.

It is always interesting to hear the commentary from digital currency experts saying how if an "investor" in digital currency, this is the time to buy.

The bullish pundits will also talk of the investment horizon of 5 to 10 years and how since the March 2020 lows, the price are still up sharply (which is true). However, they don't speak of the large number decline from the highs or how they touted the buy scenario all the way down.

Meanwhile sellers see the price going to $0.

IF a buyer, I would recommend to see a move back above the 200 week moving average and stay above that level first (and stay above) before getting all bulled up, but that would just be a start. Until then, hands off.