Bitcoin (BTC) has broken up, which is good news as it heads into another important US macro week. When this article was written on August 8, BTC/USD was racing up to resistance that had been there for two months. This happened because, as has been happening too often, the couple almost broke up at the end of the week. Bitcoinprime.software the most sophisticated trading platform, makes it simple to trade in Bitcoin.
As new data on U.S. inflation is about to emerge, the big picture might change, but sellers don’t seem willing to give up much to get back values higher than $25,000.
Cointelegraph looks at how the market is doing as the start of a new week gets closer. This is a response to people who say that what Bitcoin is going through is just a “bear market rally.”
Consider these five things when trying to guess where the price of bitcoin will go in the next few days.
Bitcoin (BTC) ends its second week above a critical support level for bear markets.
When Bitcoin trading week was over on August 7, investors and traders could finally take a deep breath. This was different from the last few weeks.
The BTC/USD pair started going up at the end of the candle or soon after. One of these gains was a great hourly candle that caused the price to go up by about $500.
Also, Bitcoin’s price has stayed above its important 200-week moving average for the past two days (MA). This makes it more likely that the line in question is now being used as support. Even though there were a lot of retests during the week, this is still the case. The moving average for the last 200 weeks is still around $22,900.This was called a “huge, violent swing” by the popular trading account TraderSZ on Twitter, but it was suitable for the market in the end.
The commodities prices are decreasing, making the picture of US inflation more complicated.
The most significant big event is coming up in August, which is usually quiet. It should happen in the next few days.
The schedule is already known by traders of risky assets worldwide. Even though CPI announcements don’t always show a trend, the market is always volatile before, during, and after the event.
But this time, everyone is talking about whether or not inflation has hit its highest point.
It’s hard to answer the question because the gas price has been going down since July, while other parts of the CPI, like rent, have reached all-time highs.
Cointelegraph says that Elon Musk, the CEO of Tesla, is one of the main reasons people should be hopeful right now. Musk pointed to this pattern as evidence that inflation will go down from here on out.
Changes to how money is handled won’t be decided by the Federal Reserve until September. This is because interest rates have increased significantly in the last few months. People think the central bank is trapped because it can’t raise interest rates much more without bad things happening.
Seasoned pros continue to horde
Even though this doesn’t happen very often, if prices keep going up, it will be interesting to see how long-term investors respond.
This week, the automatic updates from the on-chain analytics company Glassnode showed that the average number of BTC used in the last 24 hours is decreasing. This could mean traders are not responding to price changes as quickly as they used to.
Over longer periods, people also start to see things more clearly. The amount of Bitcoin that has been in a wallet for three years or longer keeps rising, and today, it hit a new all-time high of 38.426%. Exchanges are in a bad spot right now regarding keeping crypto assets because no one wants to buy them.
Coinbase order book is “dead”
Even though BlackRock, the world’s most significant asset management company, announced a partnership with Coinbase, the biggest cryptocurrency exchange in the US, the week before, its order book is still “dead,” as one critic put it, because people aren’t interested this summer.
Byzantine General also talked about a “wild imbalance” between bids and asks, which suggests that most exchange users are waiting for BTC/USD to drop to $17,600, which is where it was in June. This was clear because the difference between bids and requests was “crazy.”
When prices are low, everyone is happy “without irony.”
When it comes to the bull market surge, how people feel may give an unexpected clue about whether or not the market has hit bottom. After the worst price drop was over, people in the crypto community used words like “moon” and “Lambo” a lot more. This is based on data from the week before.
Researchers said on Twitter that when the prices of cryptocurrencies dropped in 2022, people made fun of them by chanting “moon and Lambo.”