Bitcoin is currently trading around $24,000, still in a range between $17,000 and $25,000. Locked in for 2 months now, no clear trend seems to be emerging.
Slow regression for BTC
On July 18, Bitcoin broke a downtrend line for the first time since March. However, the reaction after this crossing was rather weak and Bitcoin failed to establish itself real bullish momentum over time.
the A local high was reached on August 15 at $25,211 but the price seems to be hitting resistance at this key level. In fact, this resistance stops several highs, indicating the selling pressure at these levels.
If we noticed that bullish variation on the RSI during all this moment, last just broke. So we will have to monitor the next few days to see if a correction is emerging. The next obvious support is the $21,500 area on which the the price has bounced several times.
Bitcoin short-term trend (source: Tradingview.com)
Short-term downturn
If we look at the short-term trend and the UT (time unit) 6h we see that Bitcoin is located in ascending channel from June 18. In this type of structure, it is generally necessary to wait for a clear breakout at the top or bottom. We can expect bearish movement in the coming days.
On August 15, Bitcoin again fell on the ascending line and has experienced a small correction since then. If the asset were to lose its upper short-term trend line, it is a safe bet that it would return to the $21,500 area.
The rising Bitcoin channel (source: Tradingview.com)
If we are interested in an indicator, that of the Elliot waves, two cases are possible. The first option, Bitcoin has started a bullish movement in 5 phases and we are currently in the 3rd phase of the second one. To confirm this situation, BTC must stand above its ascending channelthe latter acts as a support.
First case for BTC (source: Tradingview.com)
The second case, we are also in a diagonal 5 movement that uses the rising trend line as support. If this support is lost, and by combining this indicator with Fibonacci retracements, Bitcoin could one around $20,500.
Second case for Bitcoin (source: Tradingview.com)
Therefore, these indicators seem to indicate a minimal correction within the next few days for Bitcoin.
Deals waiting
Meanwhile, some altcoins are seeing nice rises. The last days, Chilli is increasing significantly and is trading at the highest level since April 2022. In fact, the signal has reached its an increase of more than 112% since July 26, 2022 and is now trading around $0.21. The recent news for ppartnership with a world football giant, FC Barcelona this fine performance is certainly no stranger!
One of the oldest signs in the industry, EOS also has a great rise : almost 26% in the last 24 hours. Tezos, one of the least energy blockchain projects, is also experiencing a nice rise with more than 8.5% in 24 hours.
Among the losers, we see CEL, the symbol Celsiusthe now famous crypto lending firm that recently filed for bankruptcy. Monero has also seen a significant decline with 5.7% in 24 hours.
The crypto market still seems to be hanging on macroeconomic conditions and at the behavior of traditional markets. It is today that the American figures must be announced on the consumer spending. An indicator that has been scrutinized by investors and may a determine impact.
As we have already noted, correlation between traditional markets and the crypto market still very strong. Also the latter often results in a decline in the former.
Therefore it is necessary to be careful on traditional markets and a fortiori on the crypto market. Bitcoin remains in its range for now and so we are seeing some upside in atlcoins but more unlike a few days ago. Perhaps the coming days will give us more indications of where the trend will go for the king of cryptos and the wider market.
To learn more about Bitcoin’s dominance over Ethereum, find our article here.
