Bitcoin (BTC) headed lower on Aug. 12 as a widely anticipated decline from two-month highs began to take shape.
The 200 week moving average becomes a pivot
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair fell to $23,615 on Bitstamp before the Wall Street open, marking a 24-hour loss of around 5.2%.
The pair had reached its highest levels since June 13, as excitement over declining inflation in the US was combined with news that the world’s largest asset manager, BlackRock, was to launch a private Bitcoin fund.
While some commentators expected Bitcoin to tackle resistance closer to $30,000 as a result, others remained cautious, suspecting a new downtrend could ensue.
Target 1 hit https://t.co/iBA8qRrEOq
— Crypto Tony (@CryptoTony__) August 12, 2022
“Volume is dying. Channels are not impulses but corrections,” popular trading account Il Capo of Crypto wrote on its last update of the day
“Most people expect 28,000 or more, but the big level is 25,000 – 25,500.”
Another post reinforced the idea that the recent gains were part of a “bear market rally.”
For its part, Trader Jibon once again drew attention to Bitcoin’s 200-week moving average (MA), currently near $23,000.
Having recaptured it during the rally, the important bear market support level was now approaching as the spot price weakened.
“If the 200 MA declines, be prepared for some drop,” warned part of a new post in the day.
Ethereum is still “very strong”
On a more positive note, meanwhile, Crypto Ed latched onto predictions of further gains for both Bitcoin and the largest altcoin, Ethereum (ETH).
Having called the trip to $1,900 for the ETH/USD pair, a break to $29,000 was still on the cards for the BTC/USD pair, he said on the day.
Same move in #BTC would mean 28-29k
But that shouldn’t surprise you when following me. Already calling that for weeks in my YT updates. https://t.co/Y1lPwNAPKx pic.twitter.com/4Q5UmNqOGy— Ed_NL (@Crypto_Ed_NL) August 12, 2022
The same move in BTC would mean the $28,000-$29,000 level
But that shouldn’t surprise you by following me. I already said it for weeks in my YT updates.
In an accompanying YouTube update, Crypto Ed added that should a pullback come in next, a suitable long position for BTC would be $23,400.
“Is there anything bearish for me? I think only if we go below $22,000 and have a bearish retest of that level,” he continued.
As for Ethereum, fellow TechDev described price action as “very strong”, noting that the ETH/USD pair had regained its 20-week exponential moving average, while the BTC/USD pair was “still struggling” against the 10-week equivalent.
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