Bitcoin (BTC) gained noticeably on the morning of today’s August 5th, after an important trend line was recaptured.
Bitcoin Price Chart (Bitstamp). Source: TradingView
Daily chart gives easy reason for optimism
As the data from Cointelegraph Markets Pro and TradingView show, the Bitcoin price was able to successfully push away from the $ 22,400 mark and increase by 4.6%.
The market-leading cryptocurrency has caught up with critical support on the market-leading crypto exchange Binance, which successfully prevented a loss of the 200-week moving Average (MA) at $ 22,800.
Although this important area is still on shaky legs, Material Indicators analysts see the recapture of the 21-day MA as an important pointer that gives reason for optimism.
Helps if I post the chart with it. It was worth the wait. #BTC reclaimed the 21-DMA and the Trend Precognition A2+ aglo started flashing a new signal. It’s tentative until the D close. pic.twitter.com/gpTSxrikeT
– Material Indicators (@MI_Algos) August 5, 2022
The analyst Rekt Capital, on the other hand, remains cautious, because Bitcoin has repeatedly failed to establish the 200-week MA as a permanent support in recent weeks.
“In the past, BTC could regularly arouse massive buying interest on the 200-week MA,” as the expert points out in this context. To which he appends:
“But if BTC does not manage to defend the MA again in the short term, then this would be further evidence that the current upswing is only a small recovery and nothing more.“
Bitcoin Weekly Chart (Bitstamp) with 200-Week MA. Source: TradingView
The experts at the investment firm QCP Capital are similarly conservative, who speak of a still “very mixed” picture in their current market update.
Above all, the macroeconomic framework conditions in the form of the monetary policy decisions of the American Central Bank are seen by analysts as the driving force for further development. For example, QCP points out that Central bank chairman Jerome Powell has not yet set a clear line on the scope and level of further rate hikes.
“The global economic data point to weak growth and an imminent recession,” the investment firm writes in its update with a view to the imminent release of the new US inflation figures on August 10. And further:
“We continue to believe that the markets will move sideways and will react noticeably to the release of new figures. The US inflation figures next Wednesday are the next important figures in this regard.“
Ethereum is waiting for the merge
The altcoins around market leader Ethereum (ETH) were also able to grow in the slipstream of Bitcoin today.
For example, the Ethereum price is at $ 1,665 at the time of writing, but the ETH / BTC currency pair does not go beyond the resistance of 0.075 BTC.
ETH/BTC Daily Chart (Binance). Source: TradingView
However, with the long-awaited merge or the switch to the proof-of-stake (PoS) consensus procedure in a month, there could also be friction within the community.
“The biggest current risk for the crypto markets is the ETH merge, which is scheduled for September,” as QCP notes.
However, the market had “already priced in that the hard fork could bring problems”.