Leaderboard 728×90
Leaderboard 728×90

Bitcoin traders pinpoint key levels to watch as BTC price tests key trendlines

Bitcoin (BTC) is pressuring newly-won support levels this week as geopolitical uncertainty raises the stakes for risk assets.

After an impressive monthly close, momentum appears to be waning for Bitcoin’s latest gains, data from Cointelegraph Markets Pro and TradingView shows, and stock markets are not helping the bulls.

Volatility was cool as August began, but angst over a potential showdown between the United States and China over House Speaker Nancy Pelosi’s visit to Taiwan is already showing in Asian trading on Aug. 2.

Amid talk of a “bear market rally” being all that can describe the current setup, Cointelegraph takes a look at the crucial support and resistance levels currently facing the market on short timeframes.

Traders unconvinced over fate of 200-week moving average

Analyzing order book data on Binance, the largest exchange globally by volume, pockets of buy and sell interest stand out immediately.

At present, BTC/USD is eating through a band of bids just below $23,000. Should all that liquidity be taken, however, there is little more to support price action until closer to $21,000.

The strength of buy and sell “walls” on the Binance order book can be deceptive, as large-volume players can quickly move bids or asks from one level to the next.

The latest data was uploaded to social media by on-chain analytics resource Material Indicators on Aug. 1. It additionally highlighted the importance of Bitcoin’s 200-week moving average (MA) at just above $22,800.

BTC/USD 1-week candle chart (Bitstamp) with 200 MA. Source: TradingView

Certain whales, Material Indicators noted, were attempting to keep the 200-week MA as support but seeing little consensus from other trader groups, something which resulted in a subsequent dip below the trendline.

“Doesn’t look they are getting much help from other classes. Not sure how long they can keep this up,” part of accompanying comments read.

BTC/USD buy and sell levels (Binance). Source: Material Indicators

$26,000 then “new lows”?

Despite the Taiwan situation unnerving markets on the day, a short-term move higher for Bitcoin is not…


Read More

About The Author

Related posts