Bitcoin (BTC) rebounded the night before August 5 as a fresh trendline recovery opened the door for further gains.
Daily BTC Price Chart Sets ‘Preliminary’ Long Signal
Data from Cryptooshala Markets Pro and trade view showed that BTC/USD bounced off the local bottom at $22,400, adding about 4.6%.
The pair reversed right at key demand support on major exchange Binance, helping to avoid a more substantial loss of the 200-week moving average (MA) at around $22,800.
While this key zone remained uncertain for the bulls, the recovery of the 21-period moving average on the daily chart gave reason for optimism for the online analytical resource Material Indicators.
BTC/USD may not trigger long signals on the close of the daily candle, Twitter followers were told.
It helps if I post a diagram with it. It was worth the wait. #BTC restored 21-DMA and Trend Precognition A2+ aglo started flashing a new signal. This is preliminary until D closes. pic.twitter.com/gpTSxrikeT
— Material indicators (@MI_Algos) August 5, 2022
Trader and analyst Rekt Capital, however, expressed continued caution over Bitcoin’s bad record of turning the 200-week moving average into a solid support for this bear market.
“Historically, BTC has been able to generate huge interest from buyers on the 200-week moving average,” he said. argued.
“But if $BTC fails to retest the MA in the short term, that will likely serve as further evidence that this recovery is just one of relief.”
Equally conservative in its price prediction was trading firm QCP Capital, which sent Telegram channel subscribers in its latest market review that the overall picture is “very mixed.”
Pointing to complex macro triggers, QCP said the US Federal Reserve’s monetary policy will be a critical factor in determining market movement going forward. He noted that Fed Chairman Jerome Powell did not reach a consensus on the pace and scope of the future increase in the key interest rate.
“Global economic data points to weak growth and a looming global recession,” reads the update, which highlights the upcoming consumer price index (CPI) inflation data for July due August 10.
“We continue to believe that markets will trade sideways and be sensitive to economic data releases. The US CPI next Wednesday will be the next big thing to keep an eye on.”
The strength of Ethereum does not convince
As far as altcoins go, ether (ETH) and other large-cap tokens have joined the bitcoin rally.
3 Ethereum Derivatives Key Metrics Suggest $1,600 ETH Support Has No Strength
At the time of writing, ETH/USD is hovering around $1,665, with ETH/BTC nonetheless failing to overcome resistance closer to 0.075 after a second retest.
Roughly a month before the Ethereum merger, concerns were growing over the possibility of a controversial network hard fork.
“A more immediate and immediate risk in the cryptocurrency markets is the ETH merger scheduled for September,” QCP continued.
He added that the markets have already “begun to assess the possibility of a significant hard fork.”
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Credit : cointelegraph.com