When the price of an asset is between a rock and a hard place, traders enter with uncertainty dominance.
Bitcoin may be in favor of the bulls and the bears consequently, but by previous histories, the battle may be won by the bears.
Technical analysis suggests that the main asset may seek the congruent point towards $22548.41, but if there is buying pressure it may exceed $29581.54.
For many traders, amateurs, professionals and small investors, it is not strange that we are starting a month with low volatility and bearish sentiment.
For this reason, we bring you in the following blog post, technical points about Bitcoin so that you can make excellent investment decisions.
Monthly Critical Pivot
Bitcoin starts the month of September above the 0.6 Fibo. But the latest candle so far shows indecision on the part of traders. According to this, market conditions are in favor of the bears, but the bulls could react positively, if positive news from the funds explodes within the mean.
The monthly situation is as follows: we close August almost touching the exponential moving average of 50 periods, which has marked the price of $25234.41 so far. Add to this fact that, Bitcoin price is currently being supported by the 20-period SMA and above the resistance point of $25606.74, with the Volume-Weighted Average Price at exactly $25769.32.
For the price volume to be in favor of the bears, there must be a full breakout of the 50-period exponential moving average, the equidistant point of $24669.63, and a successive Tekan-Sen break at the exact point of $24157.68. When this happens, the price is most likely to seek median support between 22513.74, with excessive liquidity at the 100-period weighted moving average and exactly at the $18045.52 point.
If the bulls want to win the war and not let the bulls push the price volume down, the pivot price of $26645.53 and $27287.45 must be broken. That would create positive hope towards massive demand volume buying, which would drive the price up to around $29828.96. However, the sentiment of volatility points to a sell average and towards the price of $23429.36 when this article was written.
Alligator Will Bite Unsuspectingly
Following the order of ideas, we emphasize that in the long term, Bitcoin presents an upward trend in the direction of an Elliot wave number 1. But it is notorious that in the medium term, the asset is suffering a downward divergence. The final confirmation will be when the alligator bites its prey.
If the bears drive the price into massive sell-offs this and the next few months and the Kijun-Sen indicator breaks at the exact point of $25693.49, the most logical thing to do is to hit the 50 SMA at $23991.77. Exact point where the bulls will promote a price reversal towards an impulsive wave 5.
The most critical thing, and recognizing that lately the cryptocurrency market is creating psychological liquidity regions, is that the price of Bitcoin degrades until it reaches the historical support of $22,501.34, with a weighted average of volatility at $22,306.41 and with a possible touch of the average. exponential moving of 300 periods.
Otherwise, the bulls need to overcome the weekly VWAP barrier above the $26748.62 point, with a break of the resistance at the price of $26885.81. But there is a deflationary average between the prices $27,494.63 and $27,814 that make the selling price very strong.
The scenario is clear then: if the bears win, the market will be bullish above Kijun-Sen and extremely volatile after the breakout of Tekan-Sen and the 200-period weighted moving average at exactly $30,288. This last region has behaved with a strong supply zone that has made many either make their profits or simply agree to define this step as a strong wall to be broken.
Clear Fight Between Supply And Demand
In the near term, we could be entering a bid-ask short cap in the $26,123.41 to $25,473.41 price region.
If you want to open a long position, we recommend that it be above the break of $26664.52 and the equidistant point of $26737.42 from Tekan-Sen. But we strongly recommend waiting for the break of the 30 period EMA at $27337.41. Until the previous one, there are strong supply regions that must be swept.
Most Wubits Current On Chain Narrative
With just 230 days left until the #Bitcoin halving, it's likely to start getting a lot more media attention in the fourth quarter. Bullrun coming soon.
The Long Term Holder cost base reached a new level each cycle. Zooming in on this plateau is actually full of information.
The drop, observed by the 90-day variation, is slowing down, indicating repetition of past cycles.
🧐 The market caps of the top 6 stablecoins in crypto have collectively decreased by 25.9% over the past 18 months.
But for the first time since the FTX collapse last November, we see growth. As of August 22, combined market values have grown by $663.2 million.
MakerDAO recently saw an 18% price increase. While $MKR has retained some of the recent gains, I believe the recovery has been manipulated. Consequently, MKR could soon bounce back to $1,000 or even $900.
Note the increase in both exchange inflows and whale transaction counts, which coincided with an MKR 10,000 increase in supply on exchanges as prices started to rise.
📈 Ethereum's network has exceeded 467K unique address interactions in a single day, the most since ETF announcements began breaking back on June 16th.
Upticks in utility are typically a common necessity for ETH and other assets to increase in value.
Last article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. Remember that all information presented here is a combination of third party data added to our personal opinion.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Rubikkav.
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