Crypto trading expert identifies a Bitcoin ‘buy signal at a key support area’
Bitcoin (BTC) and the overall cryptocurrency market began August on a positive note, recording capital inflows to maintain its $1 trillion valuation. The market development has come as investors anticipate the latest CPI numbers which will partly dictate the price movement of both cryptocurrencies and stocks.
However, Bitcoin has corrected slightly and the focus is on the next price action for the flagship cryptocurrency, after trading at $23,060 at press time, down 1% in the last 24 hours.
In this line, crypto trading expert Ali Martinez in a chirping published on August 10, has stated that for the asset to rise, it needs to sustain a buying pressure that could push it to around $23,500, while the market should also focus on a support level of $23,890.
“The TD Sequential indicator presents a buy signal at a key support area. An increase in buying pressure could help $BTC towards $23,500 or even $24,100. Still, watch out for the $23,890 support level as a four-hour candlestick close below it could trigger a steep correction,” Martinez said.
What other analysts are saying
Elsewhere, another crypto trading expert Michael van de Poppe attributed the latest correction to uncertainty regarding the inflation numbers. In particular, in the wake of the record inflation rate in July, and the subsequent rate hike by the Federal Reserve, Bitcoin’s performance was considered impressive as the asset managed to sustain gains above $20,000.
In the middle of the last correction, Poppe, in one chirping published on August 10, also urged the market to look for a target of $23,800, but the flagship cryptocurrency needs to break the level between $23,200 and $23,300.
“Bitcoin overcorrected, anticipated and ran ahead of the CPI event (or at least investors are basing their decisions on a possible CPI outcome today),” Poppe said.
Impact of CPI data on Bitcoin
Following Bitcoin’s impressive performance following June’s CPI numbers, the asset’s current trading status can be seen as bullish despite the correction. This is because investors show no signs of selling their holdings as the global crypto market hovers above the $1 trillion capitalization.
After experiencing a rough first half of 2022, several crypto analysts, including Bloomberg commodity strategist Mike McGlone, believe that Bitcoin is likely to break out during H2 2022.
Elsewhere, as reported by Finbold, billionaire and CEO of crypto investment firm Galaxy Digital, Mike Novogratz, suggested that Bitcoin will have performed well if it trades between $20,000 – $30,000 until the end of the year.
Overall, Novogratz remains bullish on Bitcoin, claiming that with increased adoption, the crypto will likely trade at $500,000 in five years.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
