Bitcoin Bears Reclaim $29,000 as BTC Price Takes Back Control
Bitcoin (BTC), a cryptocurrency, rallied above $29,000 as a trader spotted a possible breakout that was already underway.
BTC/USD 1-hour chart. Source: TradingView
BTC price teases falling wedge breakout
Data from AskFX Markets Pro and TradingView showed that BTC price was up slightly after hitting a local low of $28,670.
Bitcoin, still range-bound during the Aug. 7 Wall Street session, largely trailed US stocks.
Market participants looked for signs that a trend return was already here, despite a lack of sustained momentum.
Jelle, a popular trader, saw this as a possible breakout of the falling wedge on the daily timeframe.
The target of this current formation is $32,000. In part of his analysis today, he asked, “Can it break key resistance?”
Bitcoin has had two wedges over the past six months. The first was in April and the second in June-July.
BTC/USD chart with annotations. Source: Jelle/X (Twitter)
Michael van de Poppe is the founder and CEO of the trading company Eight. He called yesterday’s decline a ”standard correction”
“Immediately flipped back, decent daily candles.” “Let’s see what Thursday’s CPI brings,” he added.
Van de Poppe was referring to the most important macro event of the week – US CPI for July. This has traditionally been a catalyst for volatility in the crypto market.
The intraday timeframes was mixed as always, with a game between market makers on the exchanges and those who made the trades.
$BTC
Takers cut & sold what was bought earlier https://t.co/8plHMTnbEu pic.twitter.com/DtxKDjIxrF— Skew Δ (@52kskew) August 8, 2023
Skew , a popular trader, has stated that “The collapse’s failure forced bids from spot-takers, particularly as spot buyers led the sale early on (based on the spot buy of around $29,000).”
Analysis: Bitcoin “close to being oversold”
Yann Allemann, Jan Happel and the co-founders of Glassnode (on-chain analytics company) gave a more positive market summary. They hinted that a drop below $28,000 would be more significant than most people thought.
According to Bitcoin’s risk signal metric, it is trading at its highest “high risk” level in several months. Glassnode said the market is ripe for bulls fueled by a neutral message on altcoins and low volatility.
“The bears are in control but getting exhausted,” reads part of an X (formerly Twitter) post that presented the relevant charts.
Bitcoin is close to being oversold, so we will tap the liquidity pool at around $28.5k. This may be what we were hoping for.
The article does not contain any investment advice or recommendation. Every investment or trading decision carries a certain risk. Readers should do their own research before making a final decision. (*)
