Bitcoin (BTC) edged lower on August 12 as a widely expected decline from two-month highs began to unfold.
The 200-week moving average becomes a pivot
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair had fallen to $23,615 on Bitstamp before Friday’s opening on Wall Street, representing losses of about 5.2% over 24 hours. .
The pair hit levels not seen since June 13, as excitement over lower US inflation added to news that the world’s largest asset manager, BlackRock, was launching a private bitcoin fund.
While some commentators expected bitcoin to face resistance closer to $30,000, others remained cautious as they suspected that the downtrend was still fresh.
Goal 1 hit https://t.co/iBA8qRrEOq
— CryptoTony (@CryptoTony__) August 12, 2022
Goal 1 achieved https://t.co/iBA8qRrEOq — Cryptocurrency Tony (@CryptoTony__) August 12, 2022
“The volume is dying. Channels are not impulses but corrections,” it said writing the popular Il Capo of Crypto trading account in its latest update today.
“Most people expect 28k or more, but the big level is 25000-25500.”
Another message reinforced the idea that the recent gains were part of a “bear market rally”.
Meanwhile, another trader, Jibon, pointed to bitcoin’s 200-week moving average (MA), currently near $23,000.
After reclaiming it during the upside, the important bear market support level was now fast approaching, as the spot price weakened.
“If the 200-week moving average is rejected, prepare for the fall,” he said. warning as part of a new post published today Friday.
Ethereum remains “very strong”
On a more positive note, Crypto Ed maintained its outlook for further gains for bitcoin and the largest altcoin Ethereum (ETH).
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After recalling the rise to $1,900 for the ETH/USD pair, he said that a breakout towards $29,000 was still possible for the BTC/USD pair.
— Ed_NL (@Crypto_Ed_NL) August 12, 2022
The same move in for BTC would take us to $28-29,000. But that shouldn’t surprise you if you follow me. I already announced this for weeks in my YT updates. https://t.co/Y1lPwNAPKx pic.twitter.com/4Q5UmNqOGy — Ed_NL (@Crypto_Ed_NL) August 12, 2022.
In a YouTube update, Crypto Ed added that if there was a subsequent pullback, the appropriate long position for BTC is $23,400.
“Is there anything wrong with me? I think only if we go below $22,000 and have a bearish retest of that level,” he continued.
Regarding Ethereum, there is another trader, TechDev Put down the price action as “very strong,” noting that ETH/USD had recovered its 20-week exponential moving average, while BTC/USD was “still struggling” against the 10-week equivalent.
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