Blockchain analysis firm Glassnode recently revealed that Bitcoin BTC -0.27% has been fluctuating between several popular and widely observed technical analysis pricing models.
After encountering resistance at the 200-day and 365-day moving averages (around 25.0k) in February, this week prices bounced off the 200-day and 111-day moving averages (around 19.8k).
This marked the first time in Bitcoin’s history that it fell below the 200-week moving average, suggesting that the market is entering uncharted territory.
Additionally, Glassnode data shows that Tether has been trading at a premium between $1.01 and $1.03 during the Silicon Valley bank collapse, suggesting that Tether is seen as a safe haven amid concerns about tighter regulation of the U.S. banking sector. This shows that Tether is a reliable hedge against the volatility of the traditional financial system.
Glassnode’s report highlights the current state of the Bitcoin market and the growing importance of stablecoins such as Tether. As bitcoin continues to push the boundaries of traditional finance, investors are turning to stablecoins as a way to hedge against market volatility.
With Bitcoin falling below its 200-week moving average for the first time, it remains to be seen how this will affect the future of the cryptocurrency market.
Glassnode’s report provides valuable insight into the state of the cryptocurrency market and the role of stablecoins such as Tether. As Bitcoin and other cryptocurrencies continue to evolve, it is important for investors to understand and adapt to the changing digital financial landscape.
