Bitcoin Whales Attack Sellers at $22.3k as Euro Falls Below Dollar Parity
Bitcoin (BTC) drifted near $21,000 at the Wall Street open on August 22 as the new week started without a rebound.
European raw material increase hammers the euro
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD failed to stage a comeback after last week’s 11.6% loss.
The pair posted fresh multi-week lows below $20,800 over the weekend, then staged modest relief to round $21,200 at the time of writing.
Anxiety about European markets and the upcoming Jackson Hole Symposium at the US Federal Reserve contributed to a downbeat sentiment on risk assets. The S&P 500 lost 1.8% within two hours of opening, while the Nasdaq Composite Index fell 2.2%.
In Europe, gas and electricity prices rose again on fears that supplies from Russia could be throttled harder and faster than expected.
OOPS! The German benchmark electricity price rose by >25% on Monday and passed €700 per megawatt hour for the first time. The level is about 14 times the seasonal average of the last five years. pic.twitter.com/gMQZkk7ncB
— Holger Zschaepitz (@Schuldensuehner) 22 August 2022
As a result, the euro fell below parity with the US dollar for the first time since July.
“At the end of the summer, the euro is back under pressure, partly because the dollar is bid and partly because the Damoclesian sword hanging over the European economy is not going away,” Kit Juckes, a currency strategist at Societe Generale, wrote in a note cited by Bloomberg.
As Cointelegraph reported, the euro was already facing several headwinds, with eurozone inflation still climbing in July in contrast to the US.
Below 200-week moving average ‘bad for bulls’
Analyzing the situation, chain analysis resource Material Indicators still had a good result for traders on shorter time frames.
Related: BTC Loses $21K Despite Miners’ Surrender Exit? 5 things to know in Bitcoin this week
The weekend dip had still seen the market stay low from July, it noted, meaning the 2022 “bear market rally” that had taken BTC/USD above $25,000 could still yield a return.
Still, as long as Bitcoin traded below its critical 200-week moving average (WMA) near $23,000, the situation favored bears.
Defending LL means the Bear Market Rally could regain momentum if we get some good economic data this week, but a look at #BTC Weekly chart shows signs that any potential rally will be short-lived. Losing 200 WMA is bad for bulls. If the 50 and 100 WMAs cross, it is worse. pic.twitter.com/j19Vp7SkiS
— Material Indicators (@MI_Algos) 22 August 2022
A new post knew data from the order book of major exchange Binance, with some of the biggest whales trying to remove a selling wall just above the spot price.
Trader and analyst Rekt Capital adopts a similarly optimistic long-term view argued that buying BTC below $35,000 still represented a “bargain.”
The area around this price level represents a zone of large stock exchange volume, a zone that will constitute a major obstacle if the price action goes higher.
In 2015, #BTC bottomed 547 days before the halving
In 2018, $BTC bottomed 517 days before Halving (discount in March 2020)
If Bitcoin bottoms out 517-547 days before the upcoming halving in April 2024…
The bottom will then occur in Q4 this year#Crypto #Bitcoin
— Rekt Capital (@rektcapital) 22 August 2022
However, further research by Rekt Capital predicted a macro cycle low to come in Q4 if BTC/USD were to repeat the timing of previous macro lows from 2015 and 2018.
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.
