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Bitcoin Holds the Fort Above $29,000
Bitcoin (BTC) reinforced its stance above $29,000 on August 8, raising questions about a possible imminent breakout. Metrics from Cointelegraph Markets Pro and TradingView chart a modest recovery by BTC after hitting a local low at $28,670.
In sync with US equities during the August 7 trading session on Wall Street, Bitcoin kept within a narrow margin.
The Search For Market Trends: Rekindling Hopes or Unsustained Momentum?
With no definite momentum in either direction, market players were keen to get signals of some sort of returning trend. The cue might have arrived in the shape of a potential falling wedge breakout on daily timeframes, as pointed out by recognized trader, Jelle. The trader, analyzing the day's trends, gave a heads up about the prevailing formation having a target of $32,000, invoking questions about its potential to break the crucial resistance.
Falling Wedge Breakout: A Recurring Phenomenon?
The wedge in focus started in early July, marking the second of its kind in consecutive months, with an antecedent in April that lasted until the end of June. As per Michaël van de Poppe, the CEO of trading firm Eight, the previous day's downside movement was a "routine correction."
Anticipating the ebb and flow of the macroeconomic event of the week, the CPI data release, he called for a wait and see strategy. It is widely known that US Consumer Price Index (CPI) often act as volatility triggers for the cryptocurrency market.
Intraday Analysis: A Tough Call
On intraday timeframes, predictions are always tricky, oscillating between market makers and takers on exchanges. As per trader Skew, “a failed breakdown coerced spot takers to bid, especially after leading the initial sell-off (related to spot buying around $29K)."
Bitcoin Close to Being Oversold: Glassnode
Yann Allemann and Jan Happel, co-founders of on-chain analytics firm Glassnode, argue in their market summary that the dip below $28,000 has more importance as a local bottom than people appreciate.
According to the Risk Signal metric, Bitcoin is facing its highest risk trading level in months. Coupled with a neutral signal on altcoins and an overall near all-time low volatility, the market appears to be a hotbed for bulls, argues Glassnode. "Bears are in control, but getting tired," reads an X-post featuring related charts.
