Bitcoin whales attack top sellers at $22,300 as euro falls below parity with dollar

Bitcoin whales attack top sellers at $22,300 as euro falls below parity with dollar

Bitcoin (BTC) drove nearly $21,000 at the Wall Street open on August 22 as the new week began smoothly.

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

Commodity prices in Europe rose on the euro

According to the Cointelegraph Markets Pro and TradingView, the BTC/USD pair failed to recover from last week’s 11.6% losses.

The pair hit a multi-week low below $20,800 over the weekend before making a modest rebound to reach $21,200 at the time of writing.

European market concerns and the US Federal Reserve symposium in Jackson Hole contributed to a negative view of risk assets. The S&P 500 lost 1.8% in the two hours after opening, while the Nasdaq Composite Index lost 2.2%.

In Europe, gas and electricity prices rose again due to concerns that supplies from Russia could be cut more sharply and earlier than expected.

Oops! Germany’s benchmark electricity price jumped more than 25% on Monday, topping €700 per megawatt for the first time. This level is about 14 times higher than the seasonal average for the last five years. — Holger Zschaepitz (@Schuldensuehner) August 22, 2022.

As a result, the euro fell below parity with the US dollar for the first time since July.

“By the end of the summer the euro is under pressure again, partly because the dollar is bullish but also because the sword of Damocles hanging over the European economy does not go away,” writes Kit. quoted by Bloomberg.

As Cointelegraph reported, the euro was already facing significant headwinds as inflation rose in the eurozone in July, unlike in the US.

Below 200-week moving average, “bad for bulls”

Analyzing the situation, however, the Content Indicators chain analysis resource found a silver lining for traders on shorter time frames.

Also Read: Will BTC Lose $21,000 Despite Miner Surrender Quitting? 5 things to know about bitcoin this week

The weekend’s drop still left the market in a position to hold the July lows, he noted, meaning that a 2022 “mark market rally” could carry the BTC/USD pair above $25,000. , still come back.

However, as long as bitcoin is trading below its crucial 200-week moving average (WMA) near $23,000, the case will be in favor of investors.

The protection of the LL means that the bear market rally could regain momentum if we get some good economic data this week, but a look at the #BTC weekly chart shows that any potential rally will be short-lived. Losing the WMA 200 is bad for the bulls. If the 50 and 100 WMA crosses, it is worse. — Content Indicators (@MI_Algos) August 22, 2022.

There is another job at show data from Binance’s major exchange order book, with some of the highest volume whales attempting to breach a selling wall just above the spot price.

BTC/USD order book chart (Binance). Source: Content Indicators/Twitter

With an equally optimistic view of the long term, trader and analyst Rekt Capital has declared that buying BTC below $35,000 was still a “market”.

The area around this price level represents an area of ​​significant trading volume, which will be a major obstacle if spot prices rise.

In 2015, #BTC reached its lowest level 547 days before the spread. In 2018, $BTC reached its lowest level 517 days before the halving (with a halving from March 2020). If Bitcoin is going to reach its 517-547 day low before the April 2024 halving … Then the bottom will happen in the 4th quarter of this year #Crypto #Bitcoin – Rekt Capital (@rektcapital) August 22, 2022 .

However, additional research from Rekt Capital predicted a macro cycle low in Q4 should the BTC/USD pair repeat the timing of previous macro lows from 2015 and 2018.

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

Bitcoin trend reversal: the signal is coming

Bitcoin trend reversal: the signal is coming

GameFi and DAO delivered strong growth to Solana (SOL) in Q2

GameFi and DAO delivered strong growth to Solana (SOL) in Q2