Front lines. The bulls are currently fighting to maintain the price of Bitcoin (BTC) above key supports. Do they stand a chance of winning the battle, or is it a losing battle?
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200 week moving average tests
Bitcoin price drops as low as $22,676 on Bitfinex today, August 2, 2022. It is currently allowing a rally above $23,000. Cryptocurrency trades at $23,020 at the time of writing this article. It records a daily mini-loss of 0.48%.
Ours have been putting pressure on levels around the 200 week moving average since yesterday. This average, which is a key bullish support, is currently located near $22,900.
Despite the wicks below this level, the bulls have managed to defend it for the time being. They had won it back at the previous weekly close.
Bitcoin Price: Another Support to Defend
The 200-week moving average is an important area. Trader Pentoshi pointed to another key level for Bitcoin price. He stressed the importance of the $21,800-$22,000 area.
By passing below this zone on June 16, the price of Bitcoin then fell below $20,000, then $18,000. The $21,800-$22,000 then acted as resistance on the technical bounces that took place in the following days.
By crossing back above this zone and using it as support, Bitcoin price managed to rally above $24,000 recently. It resumed the 200-week moving average.
An upward correction on fragile foundations
Will the bulls succeed in preventing a fall in Bitcoin price below these key levels? Is it necessary to ensure the continuation of an upward correction in the coming days? The Onchain Week newsletter from 1uh August from Glassnode, stated that:
“Active bitcoin addresses remain inside a well-defined downtrend channel.”
An increase in this number of active addresses would be necessary to sufficiently support Bitcoin’s bullish rebound. Glassnode suggests that the 14-day rolling average of the number of active BTC addresses Expected to exceed 950,000to signal :
“A rise in on-chain activity, suggesting potential market strength and a recovery in demand. »
August is filled with doubts for Bitcoin price. The next weekly close level will allow markets to be set for a continuation of the bullish rebound in the coming weeks, or a possible consolidation in the $20,000-$23,000 area.
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