Bitcoin falls to support at $24k, but trend remains positive according to analysts
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(Kitco News) – The price of Bitcoin (BTC) retreated in trading on Friday as the top crypto entered a widely expected period of consolidation following a 10% rally over two days this week.
Data from TradingView shows that bulls faced resistance at $25,000 during trading on Thursday. Profit taking led to a pullback to the $23,600 region before buyers arrived to bid back above the $24,000 support.
BTC/USD 4-hour chart. Source: TradingView
Kitco technical analyst Jim Wyckoff noted that “Bitcoin-US dollar prices are slightly weaker in early US trading on Friday after hitting a two-month high on Thursday,” a trend that continued until the end of the markets.
“The market is in a two-month-old price uptrend on the daily bar chart, and bulls have the overall technical advantage in the near term. The path of least resistance for prices remains sideways to higher in the near term,” Wyckoff said.
Short-term withdrawal
Bitcoin’s struggle to break above $25,000 was anticipated by many analysts, including the pseudonymous Twitter user Crypto Tony, who posted the following Tweet outlining where he thinks the price is headed in the near term.
The plan from yesterday remains true.. While below the range high, I look for a deep dive into the EQ to $23,600 and then down to $22,600 if the EQ is lost.
Two goals .. LFG 🤝 pic.twitter.com/J3a1k3ZUoZ
— Crypto Tony (@CryptoTony__) 12 August 2022
Based on the chart provided, the first target near $23,650 has been reached, while the next level of support is found at $22,645.
The trend is still positive
On the flip side of the discussion, Friday’s pullback is only a brief interlude in the ongoing uptrend that Bitcoin has been on for the past couple of months since bottoming out in mid-June.
According to crypto market analyst MichaĂ«l van de Poppe, as long as Bitcoin manages to hold on to the $23,000 support, there is a good chance it could rally in the $28,000 – $30,000 range in the near future.
#Bitcoin looks strong and follows the plan.
Intra-day corrections are taking place, but the trend is still up.
As long as #Bitcoin consistently holding $23K, continuation upwards towards $28-30K is a likely case. pic.twitter.com/HQH3zPx0pg
— Michaël van de Poppe (@CryptoMichNL) 12 August 2022
Evidence of the possibility of such a strong move higher can be found by looking at the volume profile for Bitcoin in the $24,000-$30,000 range, which is “very thin” according to independent trader and analyst Jonathan Morgan.
BTC/USD 1-Day Chart. Source: TradingView
“Thin volume profiles act as a kind of vacuum and ‘suck’ price through it from one high-volume node to the next high-volume node. In other words, it’s easier here for BTC to move higher than lower, and it should move exceptionally faster indeed higher it goes,” stated Morgan in a conversation with Kitco Crypto.
Altcoins trade flat
Price action in the broader crypto market was relatively flat on Friday, with a majority of tokens in the top 200 slightly in the green except for a few exceptions.
Daily performance in the cryptocurrency market. Source: Coin360
The most notable achievements of the day include a 22.4% increase in the price of Flux (FLUX), a 19.62% increase for Huobi Token (HT) and a 17% increase for Balancer (BAL).
The total cryptocurrency market cap is now at $1.153 trillion, and Bitcoin’s dominance rate is 40.1%.
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept responsibility for any loss and/or damage arising from the use of this publication.
