Bitcoin (BTC) is heading for a new monthly high on today, August 8, with the market already getting into a waiting position on Monday for the release of the new inflation figures on Wednesday.
Bitcoin Price Chart (Bitstamp). Source: TradingView
Next resistance at $25,000
As the data from Cointelegraph Markets Pro and TradingView show, the Bitcoin price has climbed to an intermediate high of 24,246 US dollars and thus to the highest level since the end of July.
At the same time, the market-leading cryptocurrency is within striking distance of the high of mid-June, which is why traders and analysts are now squinting at where the next important resistance could lurk.
In this context, crypto analyst Material Indicators points to new selling pressure, which is approaching at $ 25,000, and the 100-day Moving average (MA) as immediate hurdles.
“The recovery upswing in the bear market is increasing again shortly before the new inflation figures,” as the expert notes accordingly on Twitter.
In the associated daily chart, the 100-day MA is clearly the next resistance at $ 25,650 (see below).
Binance’s order book data supports the reading that there will be counter-pressure on the emerging Bitcoin price in this area, because increased liquidity is formed at $ 25,000.
Bitcoin Daily Chart (Bitstamp) with 100-day MA. Source: TradingView
Meanwhile, the American consumer Price Index (CPI), the reading of which for the month of July will be published on August 10, is expected to be a decisive pointer for further price development this week.
Although the observers assume that the crypto market will get a little more breathing space due to the new CPI, which reflects the development of purchasing power and inflation, the stock market could correct downwards, which in turn would probably also mean new losses for Bitcoin & Co.
In this context: Bitcoin, Ether in the weekly review: good prospects despite the economic crisis
The fact that the high-risk financial products are still not over the hill can be seen, among other things, from the fact that BlackRock CEO Larry Fink recently sold more than 44,000 of his shares to the influential asset management company. His first big sale since the corona crash in March 2020.
LARRY FINK CEO OF BLACKROCK WHICH IS THE WORLDS LARGEST ASSET MANAGER WITH OVER 10 TRILLION IN ASSETS SOLD ANOTHER 8% OF HIS OWN STOCK LAST WEEK. THIS IS HIS BIGGEST STOCK SALE AFTER COVID , HIS LAST BIGGEST STOCK SALE WAS RIGHT BEFORE THE COVID CRASH. $BLK pic.twitter.com/5aNwTjLzPM
– Gurgavin (@gurgavin) August 8, 2022
“A sharp downturn in the stock market could push prices on the crypto market down again,” as crypto influencer Max Rager warns. To which he appends:
“Apart from that, it is hard to imagine that we will again get similar sales pressure as after the crash of Terra and Three Arrows.“
In this regard, Rager further argues that the majority of investors expect a downturn to the low of June at worst, which, however, could no longer be a “worst case” for this reason alone.
Ethereum remains on the rise
Among the top 10 cryptocurrencies, market leader Bitcoin is not the winner of the day, despite the slight gains.
Ethereum (ETH), Solana (SOL) and Polkadot (DOT) have all gained between 5 and 8.5% in the last 24 hours.
Due to the ongoing hype around the upcoming merge, the Ethereum price was able to climb to $ 1,817, the highest level since June 9.
The analysts at Glassnode see the leading altcoin continuing to soar until the actual changeover in September.
“There is no clear direction for Bitcoin in the derivatives market, but it is clearly positive for Ethereum,” as analysts write in their current newsletter “The Week On-Chain”. And further:
“Both the futures market and the options market suggest that traders are looking at the merge in the sense of ‘buy the rumor, sell the news’ and positioning themselves accordingly.“
Ethereum Price Chart (Binance). Source: TradingView