After $25,000 proves to be too much for Bitcoin bulls, familiar support zones are once again in the spotlight. On August 12, Bitcoin (BTC) started to decline as a widely anticipated decline from two-month highs started to materialise.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Fear that there may be a further fall?
Prior to the start of the trading day on Wall Street, BTC/USD on Bitstamp fell to $23,615 according to data from crypto markets and TradingView, representing 24-hour losses of almost 5.2%.
The pair reached its highest levels since June 13 as a result of excitement over lowering US inflation and the announcement that BlackRock, the largest asset manager in the world, was opening a Bitcoin private fund.
As a result, although some observers thought Bitcoin would overcome resistance closer to $30,000, others remained wary out of concern that a new decline may follow.
“Volume is dying. Channels are not impulses but corrections “Il Capo of Crypto, a popular trading account, noted in its most recent report of the day.
“The majority of people expect 28k or greater, however the key threshold is 25000-25500.”
Another piece emphasised that the recent gains were part of a “bear market rally.” Meanwhile, fellow trader Jibon attracted further attention to Bitcoin’s 200-week moving average (MA), which is currently near $23,000.
The critical bear market support level, which had been reclaimed during the run-up, was now rapidly approaching as spot price fell. “If 200 MA Rejects, Ready for Some Drop,” he cautioned in a new post that day.
Ethereum is still incredibly strong
While maintaining a more upbeat tone, Crypto Ed continued to forecast future gains for both Bitcoin and the largest cryptocurrency, Ethereum (ETH).
He predicted the trip to $1,900 for ETH/USD and indicated that a breakout to $29,000 for BTC/USD was still possible that day.
In a related YouTube post, Crypto Ed noted that a suitable long position for BTC would be $23,400 should a retracement join the market next.
“Is there anything bearish for me? I think only if we go below $22,000 and we have a bearish retest of that level,” He went on.
TechDev, a fellow trader, assessed the price movement for Ethereum as”very strong,” saying that although BTC/USD was “still fighting” the 10-week equivalent, ETH/USD had recaptured its 20-week exponential moving average.
ETH/USD 1-hour candle chart (Binance). Source: TradingView
