The price of bitcoin (BTC) fell rapidly on August 19; the culmination of a week of sideways action ended in disappointment for the bulls.
BTC reaching new lows “is only a matter of time”
Data from Cointelegraph Markets Pro and TradingView tracked the BTC/USD pair as it fell 6.2% in a single hourly candle.
when reacting, traders were expecting a bounce to allow consolidation above current spot price levels, which were below $22,000 at the time of writing this article.
Your colleague Il Capo of Crypto, who had been predicting a return to lower levels for some time, resigned himself to the fact that the new lows were “only a matter of time”.
Consolidation below $22,500, he warned in his latest update, it would be “very bearish.”
Second option playing out. Any test of 23500 as resistance is a good sell opportunity.
Consolidation below 22500 (clean break + use the level as resistance) would be very bearish = 21k or lower
New lows are just a matter of time. https://t.co/MzxrDCZuiZ pic.twitter.com/I5PatYduNW
— il Capo Of Crypto (@CryptoCapo_) August 19, 2022
Let’s talk about BTC. The second option is up for grabs. Any test of $23,500 as resistance is a good selling opportunity. Consolidation below $22,500 (clean breakout + use of level as resistance) would be very bearish = $21,000 or so. BTC reaching new lows is only a matter of time.
Before the drop, the analyst venturefounder said that any price below $23,000 would be a “decent price to buy at long-term,” adding that bitcoin was unlikely to have broken out of its bear market so far.
The Relative Strength Index (RSI) remains close to all-time lows, indicating that the BTC/USD pair is oversold.
Nevertheless, there were buy signals below key bear market support levels, including the
200-week moving average and key entry levels for the whale.
According to data from the on-chain analytics company CryptoQuant, exchange outflows during the early hours of August 19 already amounted to 21,500 BTC.
Ether loses August gains
As for altcoins, the impact of bitcoin’s return to three-week lows was felt, unsurprisingly, with great intensity.
Ether (ETH), largest altcoin by market cap, It was down 5.2% on the day at the time of writing, trading near $1,750.
On the other hand, other major tokens lost over 11%, of which Dogecoin (DOGE) was the worst performer of the top ten, down 13.6%.
“I am bearish now unless the $1,790 level is retraced or flips to support,” added Crypto Chase about ETH in part of a separate tweet.
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