Bitcoin Price Hits $23.4K Up 4.6% Amid ‘Very Mixed’ Outlook
Bitcoin (BTC) bounced back overnight on August 5 as a new trend line opened the door for further gains.
Daily BTC price chart sets up ‘tentative’ long signal
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD bounced off a local low of $22,400 to add around 4.6%.
The pair had reversed direction right at key bid support on the main exchange Binance, helping to avoid a more significant loss of the 200-week moving average (MA) around $22,800.
While that key zone remained uncertain for bulls, a recovery of the 21-period MA on the daily chart of on-chain analytics resource Material Indicators gave cause for optimism.
BTC/USD may not give a long signal at the daily candle, it told Twitter followers overnight.
It helps if I post the diagram with it. It was worth the wait. #BTC recovered 21-DMA and Trend Precognition A2+ aglo started flashing another signal. It is for the time being until D-en closes. pic.twitter.com/gpTSxrikeT
— Material Indicators (@MI_Algos) 5 August 2022
Still, trader and analyst Rekt Capital expressed continued caution over Bitcoin’s poor performance, making the 200-week MA solid support for this bear market.
“Historically, BTC has been able to generate huge buying interest at the 200-week MA,” he argued:
“However, if $BTC fails to test the MA in the near term, it will likely serve as further evidence that this recovery is just a relief.”
Similarly conservative in its price outlook was trading firm QCP Capital, which in its latest market update sent to Telegram channel subscribers that the overall picture was “very mixed.”
Pointing to complex macro triggers, QCP said the US Federal Reserve’s monetary policy would be a determining factor in market movement going forward. Fed Chairman Jerome Powell, it noted, had not reached consensus on the pace and scale of future key rate hikes.
“Economic data globally points to weak growth and an impending global recession,” the update said, highlighting upcoming consumer price index (CPI) inflation data for July to be released on August 10:
“We continue to believe that markets will trade sideways and will be sensitive to economic data releases. The US CPI next Wednesday will be the next important one to watch.”
Ethereum strength fails to convince
On altcoins, Ether (ETH) and other large-cap tokens joined Bitcoin’s relief and pushed higher.
Related: 3 Key Ether Derivatives Metrics Suggest $1,600 ETH Support Lacks Strength
ETH/USD circled $1,665 at the time of writing, with ETH/BTC still unable to break resistance near the 0.075 mark after a retest.
With the Ethereum merger about a month away, concerns also rose over the likelihood of a contentious hard fork of the network.
“The more pressing and immediate risk in the crypto markets is the ETH merger scheduled to take place in September,” QCP continued.
It added that markets had already “started to price in the possibility of a material hard fork.”
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