BTC miners ‘finally capitulating’ — 5 things to know in Bitcoin this week

Bitcoin (BTC) starts a new week nearing key resistance as the shock of the latest United States inflation data passes — can the strength continue?

The July 17 weekly close may have been practically identical to the last, but BTC/USD is showing some much needed strength prior to the July 18 Wall Street open.

Last week was a testing time for crypto hodlers everywhere, with inflation dictating the mood across risk assets and the U.S. dollar capping the gloomy atmosphere. With those pressures now easing — at least temporarily — the mood has room to relax.

At the same time, on-chain data suggests that now is a make or break moment for Bitcoin miners, and capitulation across the market feels close.

As talk over where Bitcoin’s macro bottom could lie continues, Cointelegraph takes a look at several factors primed to shape BTC price performance in the coming days.

All eyes on weekly moving averages

Those watching the weekly chart on BTC will have a sense of deja vu this time around — BTC/USD finished July 17 under $100 away from where it was on July 10.

The latest weekly close is something of a disappointment in and of itself, with Bitcoin erasing gains at the last minute to print a “red” candle for the past seven days.

What happened next, on the other hand, had the opposite tone — a swift overnight march higher, the largest cryptocurrency adding $1,400 in under twelve hours.

It all leads up to a familiar challenge on intraday timeframes — BTC/USD is approaching both $22,000 and a key trendline at $22,600 in the form of the 200-week moving average (WMA).

Previously acting as support in bear markets, the 200 WMA has in fact flipped to resistance this time around, having been lost in mid-June and never reclaimed.

As such, analysts are eyeing that level as a key area of interest should bulls be able to sustain upside pressure.

For PlanB, creator of the Stock-to-Flow family of BTC price models, a factor beyond spot price is meanwhile reinforcing its importance. As in previous bear markets, the 200 WMA briefly went above Bitcoin’s realized price this year, providing a classic market reversal signal.

Realized price refers to the average price at which all the bitcoins in existence last moved.

“In the bear market of 2014/15 and 2018/19 (blue) realized price was above 200WMA and the bull market did not start until realized price and 200WMA touched,” PlanB told Twitter followers on July 17 alongside an accompanying chart.

“Now realized price and 200WMA…