Bitcoin is facing its crucial support level
The world’s largest digital coin has been trading in the range ($20800-$21700) for almost a week. So is it another accumulation phase before the bulls’ prime time or a bearish trap? Let’s discuss it in this article.
Seeing the bigger picture, while bitcoin is not showing the intention to break out of the range, many analysts take their time to wonder if we are going to see a $17-18k level next week due to August’s bearish tendency.
Some traders expect $BTC to reclaim the 28k level and close the CME gap that formed in the middle of June, while others expect it to break through the 20k level. But, most bulls are interested in pushing the price above the crucial level to balance the scales and avoid a potential $150 million loss. However, their attitude might be controversial after $210 million of liquidations on August 18th.
Bitcoin CME Futures. Source: TradingView
Potentially, there may be more “bloody” days for $BTC. This scenario could be expected from a weekly chart momentum indicator, which is about to give us the first major bearish signal in over three years. Bitcoin's 50 WMA (weekly moving average) looks all set to drop below the 100 WMA in a week or two, confirming the so-called bearish crossover, the first since February 2019.
While, in theory, the upcoming bearish cross would imply a stronger appearance of bearish momentum, the indicator has a perfect record of trapping sellers on the wrong side of the market; similar tricks are unusual practices during such a manipulative market.
Bitcoin MAs is about to cross. Source: TradingView
Bitcoin is hovering near levels that would ensure no “hodler” or investor who buys and holds even though tough times has made money on any purchases in almost two years.
says the head of macro strategy at Academy Securities Peter Tchir.
In addition, on August 25-27, the Jackson Hole Economic Symposium – Economic Policy Symposium 2022, “Reassessing Constraints on the Economy and Policy” is being held. The entire bank elite will gather and, together with other billionaires, will decide the monetary system's future. That will undoubtedly affect the crypto market. This is the primary economic catalyst for next week.
As the lack of volatility appears, it suggests a more significant price move is on the horizon. Opinions favor that bigger move being on the downside. Keep an eye on the market and be cautious with your trades next week!
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