Bitcoin traders pinpoint key levels to watch as BTC price tests key trend lines
Bitcoin (BTC) is pushing newfound support levels this week as geopolitical uncertainty increases bets on risk assets.
After an impressive monthly finish, momentum appears to be waning for Bitcoin’s recent gains, data from Cointelegraph Markets Pro and TradingView show, and equity markets are not helping the bulls.
Volatility was cool as August began, but anxiety over a potential showdown between the US and China over House Speaker Nancy Pelosi’s visit to Taiwan is already showing in Asian trade on August 2.
In the middle of a conversation of a “bear market rally” which is all that can describe the current setup, Cointelegraph takes a look at the crucial support and resistance levels that the market is currently facing on short time frames.
Traders are not convinced about the fate of the 200-week moving average
Analyzing order book data on Binance, the largest exchange globally by volume, pockets of buying and selling interest stand out immediately.
Currently, BTC/USD is eating its way through a band of bids just below $23,000. Should all that liquidity be taken, however, there is little more to support price action until closer to $21,000.
The strength of buy and sell “walls” on the Binance order book can be deceptive, as high-volume players can quickly move bids or requests from one level to the next.
The latest data was uploaded to social media by on-chain analytics resource Material Indicators on August 1. It additionally highlighted the importance of Bitcoin’s 200-week moving average (MA) just above $22,800.
Certain whales, Material Indicators noted, attempted to retain the 200-week MA as support, but saw little consensus from other trading groups, resulting in a subsequent drop below the trendline.
“They don’t seem to be getting much help from other classes. Not sure how long they can keep this up,” the accompanying comments read.
$26,000 so “new lows”?
Despite the unnerving Taiwan situation in the markets today, a short-term move higher for Bitcoin is not off the table, even for some of the most conservative analysts.
Related: Best Monthly Gains Since October 2021 – 5 Things to Know in Bitcoin This Week
For popular Crypto Twitter account Il Capo, BTC/USD even had the potential to reach $25,000 before returning lower than today’s levels.
In response, fellow trader Jibon suggested that it could be $26,000 before a bearish pivot comes in.
$28,056 Sir
— Trader_J (@Trader_Jibon) 2 August 2022
While keeping quiet on a potential downside target, Venturefounder, a contributor to on-chain analytics platform CryptoQuant, called $22,000 a “good price” to set up a BTC long.
Altcoins, including Ether(ETH), looked less appetizing.
“I still think most altcoins are too expensive for this part of the cycle, or should I say Bitcoin is too cheap?” he asked on 1 August.
“$22k is still a good price for long BTC for me. Can’t say the same for altcoins, not even $ETH.”
ETH/USD was trading below $1,600 at the time of writing, down around 4% on the day, but still 12% higher than at the same time a week ago.
“Unless you think ALTs are going to break to ATH against BTC soon, there’s no point in longing,” Venturefounder added.
A look at the ETH/BTC chart, meanwhile, shows the importance of 0.075 resistance for ETH bulls, this failed to crack during the July crypto rally.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade involves risk, you should do your own research when making a decision.
