Bitcoin price has support at $20K as crypto market struggles to gain momentum
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(Kitco News) – The struggle to generate momentum continued for Bitcoin (BTC) and the broader cryptocurrency market on Monday, as prices traded flat on the day without any major developments to give crypto traders something to be excited about.
Data from TradingView shows that bulls managed to bounce back above the $20,000 support during afternoon trade after Bitcoin fell to a daily low of $19,585 at the close on Sunday.
BTC/USD 4-hour chart. Source: TradingView
While Monday’s recovery back above $20,000 was a welcome sight for many, Kitco senior market analyst Jim Wyckoff cautioned bulls against being overly optimistic as bears remain in control of the market.
“Prices over the weekend hit a six-week low and are trending down again. Bears have the overall technical advantage in the short term, suggesting more sideways-lower price action in the near term,” Wyckoff warned in his morning Bitcoin brief.
Weakness in the short term, but Bitcoin will survive
The potential for near-term weakness was also noted by independent market analyst Michaël van de Poppe, who posted the following Tweet outlining a potential price path that Bitcoin could follow over the next couple of weeks.
Still a potential scenario #Bitcoin.
The trigger is a $19K recovery for me, but we’ll have to see if this holds up.
Total market cap reaches the 200-week MA and usually provides support, and then a HL is confirmed.$DXY topping soon? pic.twitter.com/lg7tij13qa
— Michaël van de Poppe (@CryptoMichNL) 29 August 2022
As noted by Poppe at the end of his tweet, how Bitcoin performs in the days and weeks ahead is likely to be heavily influenced by the performance of the US dollar, which has been on a tear higher since early August.
That said, Bitcoin actually looks like it will survive to fight another day, which has led some former naysayers to issue self-corrections on the Bitcoin case.
That includes author and former stockbroker Jordan Belfort, also known as “The Wolf of Wall Street”, who recently acknowledged that his initial prediction in 2017 that BTC would go to zero was wrong.
“At the time I really hated crypto, I stand by everything I said about crypto in 2017 except for one thing, I was wrong about Bitcoin going to zero, but I didn’t look closely enough because I said it’s a scam because it just seemed that way because in all the earmarks on it,” Belfort said.
Mixed day for the altcoin market
It was mostly mixed trading in the altcoin market, with the majority of tokens flat on the day as they followed the lead of Bitcoin.
Daily performance in the cryptocurrency market. Source: Coin360
The day’s best performers include XYO (XYO), which posted a 14.87% gain, along with a 13.5% increase in the price of Synthetix (SNX) and a 10.54% gain for Ethereum liquid staking service Lido DAO ( LDO) ).
The total cryptocurrency market cap is now $980 billion, and Bitcoin’s dominance rate is 39.4%.
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.
