Familiar support zones are back on the radar after $25,000 proves too much for Bitcoin bulls.
Bitcoin (BTC) headed lower on Aug. 12 as a broadly expected comedown from two-month highs began to take shape.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
200-week moving average becomes pivot
The pair had seen its highest levels since June 13 as enthusiasm over declining United States inflation combined with news that the world’s largest asset manager, BlackRock, was launching a Bitcoin private fund.
While some commentators hoped for Bitcoin to tackle resistance closer to $30,000 as a result, others remained cautious, with suspicions that a fresh downtrend could ensue remaining.
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 in its latest update on the day.
A further post reinforced the idea that the recent gains were part of a “bear market rally.”
Fellow trader Jibon meanwhile drew fresh attention to Bitcoin’s 200-week moving average (MA), currently near $23,000.
After reclaiming it during the run-up, the important bear market support level was now fast approaching as spot price weakened.
“If 200 MA Reject, Ready for Some Drop,” he warned in part of a fresh post on the day.
Ethereum remains “very strong”
Striking a more positive tone, meanwhile, Crypto Ed stuck by predictions of further gains for both Bitcoin and largest altcoin Ethereum (ETH).
Having called the trip to $1,900 for ETH/USD, a breakout to $29,000 was still on the cards for BTC/USD, he said on the day.
— Ed_NL (@Crypto_Ed_NL) August 12, 2022
In an accompanying YouTube update, Crypto Ed added that should a retracement enter 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 we have a bearish retest of that level,” he continued.
Regarding Ethereum, fellow trader TechDev described price action as “very strong,” noting that ETH/USD had reclaimed its 20-week exponential moving average while BTC/USD was “still fighting” the 10-week equivalent.
ETH/USD 1-hour candle chart (Binance). Source: TradingView
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