200-week moving average becomes pivot
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dipping to $23,615 on Bitstamp prior to the day’s Wall Street open, marking 24-hour losses of around 5.2%.
The pair had seen its highest levels since June 13 as enthusiasm over declining United States inflation combined with news that the world’s largest asset manager, BlackRock, was launching a Bitcoin private fund.
While some commentators hoped for Bitcoin to tackle resistance closer to $30,000 as a result, others remained cautious, with suspicions that a fresh downtrend could ensue remaining.
Target 1 hit https://t.co/iBA8qRrEOq
— Crypto Tony (@CryptoTony__) August 12, 2022
“Volume is dying. Channels are not impulses but corrections,” popular trading account Il Capo of Crypto wrote in its latest update on the day.
A further post reinforced the idea that the recent gains were part of a “bear market rally.”
Fellow trader Jibon meanwhile drew fresh attention to Bitcoin’s 200-week moving average (MA), currently near $23,000.
After reclaiming it during the run-up, the important bear market support level was now fast approaching as spot price weakened.
“If 200 MA Reject, Ready for Some Drop,” he warned in part of a fresh post on the day.
Ethereum remains “very strong”
Striking a more positive tone, meanwhile, Crypto Ed stuck by predictions of further gains for both Bitcoin and largest altcoin Ethereum (ETH).
Related: Coming sooner: ETH devs move up the date for Merge
Having called the trip to $1,900 for ETH/USD, a breakout to $29,000 was still on the cards for BTC/USD, he said on the day.
— Ed_NL (@Crypto_Ed_NL) August 12, 2022
In an accompanying YouTube update, Crypto Ed added that should a retracement enter next, a suitable long position for BTC would be $23,400.
“Is there anything bearish for me? I think only if we go below $22,000 and we have a bearish retest of that level,” he continued.
Regarding Ethereum, fellow trader TechDev described price action as “very strong,” noting that ETH/USD had reclaimed its 20-week exponential moving average while BTC/USD was “still fighting” the 10-week equivalent.
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