Bitcoin (BTC) may gain slightly again on Thursday, although the highest inflation was reported in the European Union (EU) today, August 18.
Bitcoin Price Chart (Bitstamp). Source: TradingView
Support and resistance are very close
As the data from Cointelegraph Markets Pro and TradingView show, the Bitcoin price was able to climb to an intermediate daily high of $ 23,500, which consolidates the $ 23,000 mark as a support.
In the course of the week, concerns had actually spread about new selling pressure on the crypto market after Bitcoin and Ethereum (ETH) could not successfully break their long-term resistances.
The weakening bulls are reason enough for analysts to be cautious about further price developments.
“BTC has dropped from the big ascending channel to the bottom”, as the influencer Daan Crypto Trades notes in this regard. To which he appends:
“The range at $ 23,800 – $ 24,000 will now act as resistance. If we make the jump back, then the whole thing was a bear trap, but if we fail, it goes further down.“
The next support has meanwhile opened at 22,800 US dollars, because here the whales are buying more and more again, as the data from Whalemap shows.
The 200-Week Moving Average (MA) is also just below this mark, which is why the $ 22,800 mark is all the more to be considered a red line if it goes down again.
“Back to the beginning”, as the analysts of Whalemap mean by referring to a corresponding chart. To which they attach:
“The whale accumulation at –23,400 – $22,800 is the next big support for Bitcoin (in case we continue to fall).“
Whale accumulation for Bitcoin. Source: Whalemap/ Twitter
Record inflation in Europe
From a macroeconomic point of view, inflation is again the focus today, because in the EU a whopping figure of 9.8% is recorded for July.
This also means record inflation for Europe, with 9.6% already on the chart in June. As a comparison: in July 2021, inflation in the EU was only 2.5 %-
“The lowest annual inflation rates are recorded in France, Malta (both 6.8%) and Finland (8.0%), while the highest rates are recorded in Estonia (23.2%), Latvia (21.3%) and Lithuania (20.9%), ” according to the Eurostat report. And further:
“Compared to June, annual inflation has fallen in six member states, remained stable in three states and increased in eighteen states.“
Meanwhile, Isabel Schnabel from the Executive Board of the European Central Bank (ECB) is not sure in an interview with Reuters that inflation has reached the current high point with a new record level.
“I would not rule out that inflation will rise even further in the short term,” as the economist admits accordingly. To which she appends:
“However, all forecasts are currently accompanied by high uncertainty. So it is very difficult to predict when inflation will reach its peak.“
The EU’s crushing inflation figures come just a day after the UK was forced to report double-digit inflation for the first time since 1980.
Meanwhile, inflation in the US has already declined this month, with the August surveys not due again until September 13.