The Reign of the Bears – The price of Bitcoin (BTC) loses a key level. The bulls still seem to lack the strength to confirm a bullish rally, which could allow the king of cryptocurrencies to reach new local highs for the month.
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Bitcoin price below major bullish support
The price of bitcoin drops to $22,390 today, August 4, 2022. The cryptocurrency closed the day at around $22,480, with an approximate daily loss of 3.30%.
Trader Rekt Capital pointed out that Bitcoin “ always try to retest » the 200-week moving average as support.
The weekly close is approaching, and the bulls need to at least keep the cryptocurrency price above this average, for even partial confirmation of the start of a relatively strong bullish technical bounce.
Nevertheless, “there is very little buying volume to support this new test at this time,” according to Rekt Capital. Sellers dominate the markets in terms of volume for the “all week so far”.
Stocks outperform BTC price
While the weekly bull run above the 200-week moving average therefore seems compromised, trader Cryptobirb shared a chart that shows Bitcoin falling below a trendline.
This rupture could presage “ more lateral implications for the price of Bitcoin in the short term.
Traders are thus highlighting signs of relative weakness in Bitcoin. The cryptocurrency has even shown “relative weakness against the S&P500” in recent days, according to trader Pedma.
The S&P500 “produced green bars every day”, while the price of Bitcoin has chained red chandeliers this week.
This relative weakness of the cryptocurrency is obviously not “a very good sign if we expect any type of significant recovery. »
This bearish outlook contrasts with this analysis which argues that Bitcoin price is about to enter a pre-bull phase. A weekly close below the 200 week moving average would confirm the fact that the bulls are not yet ready to regain control, even in the short term, despite the recommended signs of the last week. Although the outlook issued by traders today is quite pessimistic, the markets still have three days to turn things around.
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