Bitcoin traders pinpoint key levels to watch as BTC price tests key trendlines

Bitcoin (BTC) is pressuring newly-won assist ranges this week as geopolitical uncertainty raises the stakes for threat property.

After a powerful month-to-month shut, momentum seems to be waning for Bitcoin’s newest positive aspects, information from Cointelegraph Markets Professional and TradingView exhibits, and inventory markets will not be serving to the bulls.

Volatility was cool as August started, however angst over a possible showdown between the USA and China over Home Speaker Nancy Pelosi’s go to to Taiwan is already displaying in Asian buying and selling on Aug. 2.

Amid discuss of a “bear market rally” being all that can describe the current setup, Cointelegraph takes a look at the crucial support and resistance levels currently facing the market on short timeframes.

Traders unconvinced over fate of 200-week moving average

Analyzing order book data on Binance, the biggest change globally by quantity, pockets of purchase and promote curiosity stand out instantly.

At current, BTC/USD is consuming by means of a band of bids just under $23,000. Ought to all that liquidity be taken, nevertheless, there may be little extra to assist worth motion till nearer to $21,000.

The energy of purchase and promote “partitions” on the Binance order e book could be misleading, as large-volume gamers can rapidly transfer bids or asks from one degree to the subsequent.

The newest information was uploaded to social media by on-chain analytics useful resource Materials Indicators on Aug. 1. It moreover highlighted the significance of Bitcoin’s 200-week shifting common (MA) at simply above $22,800.

BTC/USD 1-week candle chart (Bitstamp) with 200 MA. Supply: TradingView

Sure whales, Materials Indicators famous, have been trying to maintain the 200-week MA as assist however seeing little consensus from different dealer teams, one thing which resulted in a subsequent dip under the trendline.

“Would not look they’re getting a lot assist from different courses. Undecided how lengthy they will maintain this up,” a part of accompanying feedback learn.

BTC/USD purchase and promote ranges (Binance). Supply: Materials Indicators

$26,000 then “new lows”?

Regardless of the Taiwan scenario unnerving markets on the day, a short-term transfer larger for Bitcoin just isn’t off the desk, even for a few of its most conservative analysts.

Associated: Greatest month-to-month positive aspects since October 2021 — 5 issues to know in Bitcoin this week

For in style Twitter account Il Capo of Crypto, BTC/USD even had the potential to hit $25,000 earlier than returning decrease than present ranges.

Responding, fellow dealer Jibon advised that it may very well be $26,000 earlier than a bearish pivot enters.

Whereas they stored quiet on a possible draw back goal, Venturefounder, a contributor to on-chain analytics platform CryptoQuant, referred to as $22,000 a “good worth” to arrange a BTC lengthy.

Altcoins, together with Ether(ETH), appeared much less appetizing.

“I nonetheless assume most altcoins are too costly for this a part of the cycle, or ought to I say Bitcoin is simply too low cost?” he queried on Aug. 1.

“$22k continues to be good worth to lengthy BTC for me. Cannot say the identical for altcoins, not even $ETH.”

ETH/USD traded under $1,600 on the time of writing, down round 4% on the day however nonetheless 12% larger than the identical time every week in the past.

“Except you assume ALTs are going to interrupt to their ATH towards BTC quickly, is senseless to lengthy,” Venturefounder added.

A have a look at the ETH/BTC chart in the meantime exhibits the significance of 0.075 resistance for ETH bulls, this failing to crack through the July crypto rally.

ETH/BTC 1-day candle chart (Binance). Supply: TradingView

The views and opinions expressed listed below are solely these of the creator and don’t essentially mirror the views of Each funding and buying and selling transfer entails threat, you must conduct your individual analysis when making a call.