Bitcoin price hits key $22,800 level again, metric shows ‘bitcoin buying frenzy’

Bitcoin price hits key $22,800 level again, metric shows 'bitcoin buying frenzy'

Bitcoin (BTC) returned to the base on August 4 as higher levels gave way to the 200-week Moving Average (MA).

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

The battle for the classic bitcoin price trendline continues

Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair fell to repeatedly test the main bearish market trend as support.

The day’s opening on Wall Street produced only a brief change in mood, and the pair broke over $23,000 before continuing their previous behavior.

The atmosphere was not changed by the news that investment giant BlackRock has partnered with leading exchange Coinbase to offer cryptocurrency trading to clients.

Instead, the familiar status quo of the 200-week moving average just above $22,800 is entering another chapter, with bulls and bears still fighting for control. On-chain analysis tool Content Indicators noted that the active whale class on the world’s largest exchange, Binance, was in a riskier mood on Thursday.

“Historically the purple whale class has had the biggest impact on bitcoin price action,” he wrote on Twitter alongside a chart of data from Binance’s order book.

“It’s interesting to see them pumping in other classes.”

BTC/USD pair buy and sell levels (Binance). Source: Content Indicators/Twitter

The chart showed weak support near the spot price, with more interest in buy offers only around $22,400 should the breakout occur. Resistance, meanwhile, was $23,400.

“A lot of movement on the lower timescales, but with this local high sweep, we’re finally ready to go down towards the downside targets,” said added the famous Crypto Credible trader in his latest prediction on August 3.

“Looking for a higher low and a reversal to continue higher towards 25,000+ for BTC.”

Buy data tips at BTC supply shock

In terms of buyer interest, on-chain data also showed a significant increase in the overall share of BTC being illiquid.

Also read: Irrefutable evidence that bitcoin has capitulated in the last two months – analysis

Originally created by leading Blockware analyst William Clemente and statistician Willy Woo, the Illiquid Supply Shock (ISS) ratio measure was experienced by the popular Game of Trades commentator. called “huge peak” in July.

ISSR rises when BTC is largely withdrawn from circulation, increasing the likelihood of a price spike based on demand exceeding supply.

“HODLers have gone on a buying spree not seen since 2018,” Game of Trades said the same day, uploading SSR data hosted by on-chain analytics firm Glassnode.

Annotated chart of bitcoin Illiquidity Supply shock ratio. Source: Games of Trades/Twitter

Glassnode itself noted during this time that mass miners were still selling more BTC at a loss than at a profit, but demand is likely to increase at this time as well.

“This is typical in bear markets, and a reversal is often associated with a recovery in demand,” he said. said on a graph showing the profits and losses made per day.

Bitcoin realized an annotated profit and loss chart. Source: Glassnode/Twitter

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of All investment and business transactions involve risk. You should do your own research before making a decision.

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