Bitcoin price retests key $22.8K as metric points to ‘BTC buying spree’

Bitcoin (BTC), which was at higher levels than usual, returned to base on Aug. 4, as a fight for the 200-week moving Average (MA) began.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

The battle for the classic Bitcoin price trendline is raging

Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD fell to repeatedly test the support line for bear markets.

Wall Street’s open on the day provided only a temporary change in mood. The pair spiked above $23,000, but then continued their previous behavior.

An announcement that BlackRock, the investment giant, had partnered up with Coinbase to offer crypto trading to clients kept the atmosphere sanitized.

Instead, the status quo with the 200-week MA at $22,800 was maintained, with bears and bulls fighting for control. Material Indicators, an on-chain analytics resource, noted that Binance, the whale class most active on the biggest global exchange, was in a less risk-off mood.

It wrote, “The purple class whales have historically had most influence over Bitcoin price actions,” along with a chart from the Binance order books.

“Interesting to watch them dump into other classes pumping.”

BTC/USD buy-sell levels (Binance). Source: Material Indicators/Twitter

The chart indicated that support was weak near the spot price. However, there was more substantial bid interest at $22,400, in case of a breakup. Resistance was building at $23,400.

Credible Crypto, a popular trader, said that there was “lots of chop here in lower time frames but with the local sweep of highs we finally look prepared to get that flush down onto downside targets.” His latest forecast for Aug. 3 was also published.

“Looking for higher lows and a reversal in order to continue upwards to 25k+ USDBTC.

BTC Supply shock – Buying data suggests

Concerning buyer interest, data from the on-chain showed that there was a significant increase in the percentage of overall BTC becoming illiquid.

Related: Analysis of Bitcoin’s capitulation in the past 2 months – analysis

Originally developed by William Clemente (lead insights analyst at Blockware) and Willy Woo (statistician), the Illiquid Supply Shock metric (ISS) reflected what Game of Trades called a “massive spike in July”.

When BTC is taken from circulation primarily, ISSR rises. This increases the chance of a price spike based on supply outweighing demand.

Game of Trades posted SSR data from Glassnode, stating that “The HODLers went on a buying spree like nothing seen since 2018”.

Annotated chart of the Bitcoin Illiquid Supply Shock Ratio Source: Games of Trades/ Twitter

Glassnode noted, however, that hodlers were still selling more BTC at losses than they made profit. However, this demand is likely to increase.

It commented that this is typical of bear market and that a reversal can often be associated with a pickup in demand.

Annotated chart showing Bitcoin’s profit and loss. Source: Glassnode/ Twittercom. You should do your research before making any investment or trading decision.
https://cointelegraph.com/news/bitcoin-price-retests-key-22-8k-as-metric-points-to-btc-buying-spree

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Donna Burk

Donna Burk– Business News My Name is Donna Burk and I am also the main source from the ‘Dailynewssheet.com’ of all the exclusive and most delicate visualization of the activities in the business sector. My first step towards this journey was taken in the very early years of my life. I started with an independent financial consultant. However, I only had almost 4 years of skills and experience in this market. I have always been a free personality and like to fly one place to another, to explore more and more. Moreover, this passion and craze of traveling gave me a chance to report a section for best news associations. Last but not least, I am presently working full-time as an editor.

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