The price of bitcoin (BTC) rallied overnight on August 5as a new trendline claim opened the door for further gains.
BTC Daily Price Chart Sets ‘Tentative’ Buy Signal
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD rebounded from a local bottom at $22,400 to post gains of around 4.6%.
The pair had reversed direction right at key supply support on major exchange Binance, which helped prevent a more substantial loss from the 200-week moving average (MA) around $22,800.
Although that key zone remains uncertain for the bulls, the recovery of the 21-period MA on the daily chart gave cause for optimism. to the on-chain analysis resource Material Indicators.
The BTC/USD pair might not trigger a buy signal at the close of the daily candlehe told his Twitter followers overnight.
Helps if I post the chart with it. It was worth the wait. #BTC reclaimed the 21-DMA and the Trend Precognition A2+ aglo started flashing a new signal. It’s tentative until the D closes. pic.twitter.com/gpTSxrikeT
— Material Indicators (@MI_Algos) August 5, 2022
It helps that I post the chart with it. The wait was worth it. BTC recovered from the 21-DMA and the Trend Precognition A2+ aglo started to give a new signal. It is tentative until closure D.
The trader and analyst Rekt Capital expressed caution about bitcoin’s poor track record in turning the 200-week MA into strong support in this bear market.
“Historically, BTC has been able to generate huge buying interest at the 200-week MA,” plot.
“But if BTC fails to retest the MA anytime soon, that would likely serve as further evidence that this rally is simply relief.”
Equally conservative in its outlook on prices was trading firm QCP Capital, which In his latest market update, he sent subscribers to his Telegram channel that the overall picture was “very mixed.”
Pointing out the complex macro triggers, QCP said that the monetary policy of the US Federal Reserve would be a decisive factor for the market in the future. Fed Chairman Jerome Powell noted that he had failed to reach consensus on the pace and scope of future hikes in key interest rates.
“Global economic data points to poor growth and an upcoming global recession,” the update read.highlighting that the next inflation data for the Consumer Price Index (CPI) for July will be published on August 10.
“We continue to think markets will trade sideways and be sensitive to economic data releases. Next Wednesday’s US CPI will be the next big thing to watch.”
The strength of Ethereum is not convincing
As for altcoins, Ether (ETH) and other large-cap tokens joined bitcoin’s bullish momentum.
The ETH/USD pair was hovering around $1,665 at the time of writing this article, but the ETH/BTC pair failed to break the nearest resistance at the 0.075 mark after a second test.
With just a month to go before the Ethereum merger, concerns have also grown over the possibility of a hard fork of the network.
“The most pressing and immediate risk in the crypto markets is the ETH meltdown that is scheduled for September,” QCP continued.
He added that markets had already “begun to consider the possibility of a material hard fork.”
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