Bitcoin analysts identify key levels to watch as BTC price tests key trendlines.
Key levels to watch on Bitcoin chart
Bitcoin is putting pressure on newly gained support levels this week as geopolitical uncertainty increases risks in the cryptocurrency market. After the green monthly close, Bitcoin’s recent momentum is waning. It doesn’t help the bulls in the stock markets. Volatility was good when August started. However, concern about a possible showdown between the US and China over the visit of Speaker of the House Nancy Pelosi to Taiwan is already showing itself in Asian trade on 2 August.
Traders pay attention to the 200-week moving average on the Bitcoin chart
A review of the order book data from volume leader Binance reveals pockets of buy and sell interest immediately. Currently, BTC is moving within a bid band just below $23,000. However, if all that liquidity is taken in, there is little to support the price until it approaches $21,000.
The strength of the buy and sell “walls” on the Binance order book can be misleading. Because large volume players can manipulate offers or requests. The latest data was uploaded to social media by Material Indicators on August 1. Additionally, he highlighted the importance of Bitcoin’s 200-week moving average (MA) just above $22,800.
Material Indicators states that some whales are trying to hold the 200-week MA as support. But he says they saw little consensus from other groups of traders, something that caused it to drop below the trendline later on.
Is $26,000 the new support level?
During the day, we saw that Taiwan news triggered market sales. However, despite this effect, a short-term bullish run for Bitcoin is not off the table for even some of its most abstaining analysts. For popular Twitter account Il Capo of Crypto, BTC/USD even had the potential to hit $25,000 before returning to lower levels than current levels. The other responder, Jibon, suggested that it could be $26,000 before the downtrend enters.
$28,056 Sir
— Trader_J (@Trader_Jibon) August 2, 2022
Venturefounder, a contributor to on-chain analytics platform CryptoQuant, described $22,000 as a “good price” to set up a long BTC while keeping quiet about a potential downside target. Altcoins including Ethereum looked less appetizing. According to the analyst:
I still think most altcoins are too expensive for this part of the cycle, or should I say Bitcoin is too cheap? $22,000 is still a good price for long BTC for me. I can’t say the same for altcoins, not even the ETH dollar.
Venturefounder added that “if you don’t think altcoins will soon break their ATH against BTC, there is no point in going long.” Meanwhile, a look at the ETH/BTC chart shows the importance of the 0.075 resistance for ETH bulls. It did not break during the crypto rally this July.
13895
