Bitcoin Price Hits $23.4K, Gains 4.6% Amid ‘Very Mixed’ Outlook

Bitcoin Price Hits $23.4K, Gains 4.6% Amid 'Very Mixed' Outlook

Bitcoin (BTC) bounced back on the night of August 5 as another trend reversal opened the door for further gains.

1-hour candlestick chart of the BTC/USD pair (Bitstamp). Source: Trade View

BTC Daily Price Chart Gives ‘Temporary’ Long Signal

Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair recovered from the local low at $22,400 to add about 4.6%.

The pair reversed direction right at key supply support on the major exchange Binance, leading to a further loss of the 200-week moving average (MA) at around $22,800.

While this key zone remains uncertain for bulls, the recovery of the 21-period moving average on the daily chart has given analytical resources on the Material Indicators chain hope.

BTC/USD may not trigger a long signal at the end of the daily candle, he told his Twitter followers overnight.

It helps if I post the program with it. It was worth the wait. #BTC gained 21-DMA and aglo Trend Precognition A2+ started flashing a new signal. It is temporary until the end of the day. — Content Indicators (@MI_Algos) August 5, 2022

However, trader and analyst Rekt Capital has warned about bitcoin’s weak ability to turn the 200-week MA into solid support for this bear market.

“Historically, BTC has been able to generate significant buyer interest at the 200-week moving average,” he said. declared :

“But if BTC fails to retrace the MA soon, it would likely be further evidence that this rally is nothing more than a relief.”

BTC/USD (Bitstamp) week 1 candle chart with the 200 week MA. Source: Trade View

Trading firm QCP Capital was also cautious about its price outlook. In her latest market update, she told Telegram channel subscribers that the overall picture was “very mixed”.

Citing complex macroeconomic triggers, QCP said the US Federal Reserve’s monetary policy would be a determining factor for the market’s future. Fed Chairman Jerome Powell noted that there was no consensus on the pace and scope of key interest rate hikes in the future.

“Global economic data points to weak growth and a looming global recession,” the update said, highlighting the upcoming consumer price index (CPI) inflation data for July, due for publication on August 10:

“We continue to believe that markets will move sideways and be sensitive to economic data releases. Next Wednesday’s US CPI is the next big thing to watch.”

The strength of Ethereum does not convince

As for altcoins, Ether (ETH) and other large cap tokens helped bitcoin’s rise.

Also Read: 3 Ether Derivative Metrics Suggest ETH Support at $1,600 Lacks Strength

ETH/USD was hovering around $1,665 at the time of writing, and ETH/BTC failed to break the resistance closer to the 0.075 mark after the second retest.

ETH/BTC chart in 1 day candles (Binance). Source: Trade View

About a month away from the Ethereum Merge, concerns were also growing about the likelihood of a controversial hard fork of the network.

“The most pressing and immediate risk in the cryptocurrency markets is the ETH merger that is going to happen in September,” QCP continues.

He added that the markets had “already started evaluating the possibility of a hardware fork.”

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of All investment and trading involves risk, you should do your own research before making a decision.

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