The US inflation data is another factor that is stopping the BTC price gains as crypto brokers, investors and retail trader’s brace up for the outcome of the CPI report. The sentiment in the market shows that most market participants are taking risk-off as the crypto industry waits to embrace the impact of the news.
The technical charts, on the other hand, suggest clues for a bottomed crypto market cap. Read on to find out more.
BTCUSD: Technical Analysis
Monthly Resistance Levels: 40000, 33000.
Monthly Support Levels: 18300, 19600.
The Bulls were able to survive the previous month by closing the month with about 33% in their favor against the Bears. The new month is still fresh and the trading activity is still low currently and there hasn’t been any major volatility in the BTCUSD pair. However, if the Bulls can survive this August and the price of bitcoin rises with greater momentum, we may see the price reach the 40000-dollar mark, making about a 120% increase from the 18300-dollar mark.
Weekly Resistance Levels: $26500, $24600.
Weekly Support Levels: $20000, $18600.
The BTCUSD pair had seen the Bulls take control of the market in the last trading activities of 25 July 2022 after rejecting the 20000-support level in the market. The Bulls have sustained the momentum for weeks as they were holding on to their positions in the market. The last trading activities for the week closed in a doji as crypto brokers, and retail traders were being careful of the resistance levels that the price is approaching so that they don’t lose their profit to the sellers around the resistance zones.
From the past trading activities, sellers have been taking total dominance of the market anytime the price retest the broken zones that the seller has taken out. There is a possible scenario that the sellers may want to dominate the market from the above resistance level of 26500.
Daily Resistance 24300, 24000.
Daily Support 18900, 20700
It is more of the waiting game in the bitcoin market as the price of the coin continues to move in a range between the 24500 high and the low of 22000 low in the past 15 days. The sentiment in the market shows that crypto brokers, investors, and cryptocurrency traders are skeptical about the market because the price has not broken out above the ranging box of the market.
A breakout above the resistance level of 25000 will indicate that the crypto market is in a bullish state as the lows are getting higher and the highs are also getting higher at the breakout of the zones.
A breakout above the 24500-resistance level is what the Bulls need for the bullish rally to continue as the market sentiment is attracting more buyers into the market. The support level of the 17K-19K zone has been able to hold for the past weeks, as long as it is not breached, the bullish scenario is still possible.
The question in the mine of crypto brokers and retail traders will be about the resistance levels of 25000, can the Bears take over the market as it has done at the retest of various zones? We are yet to see major reversals in the market for the Bears to dominate, therefore we wait for the price to give us the clue in the future.
Bitcoin BTC News Events
US CPI DATA SLOWS DOWN TO 8.5%.
The price of bitcoin has been heavily imparted since the start of the year, as the inflation figures were directly affecting the cryptocurrency markets whenever the inflation number increases. The value of the bitcoin decreases when the data shows that the inflation level has increased in the economy.
For several months, the inflation data had been on the rise, US announced its record-breaking inflation percentages like the July record of 9.1% which is the highest in over 40 years. Investors, crypto brokers, and crypto users were relieved of fear as the US announced a lower inflation number of 8.5% of the previous month lower than the envision of some crypto analysts at the writing of this report.
The cryptocurrency industry saw immediate action from various participants in the market as the bitcoin price surged higher by about $1000 from the previous level to hit the almost 24000-dollar mark.
Conclusion and Projection
Some analysts see the BTCUSD pair as getting closer to the whale’s accumulation area and the scenario will likely be that the price will breakout above the resistance level for the uptrend to continue with less chances of a lower price plunge.
If the sentiment in the market continues to favor the Bull we may see the trend changing from a downtrend to an uptrend and the price of bitcoin BTC will continue to increase in value.
This article will not be giving advice for investment. It is strictly for educational purposes. Please consult your financial advisor when trading on leverage instruments, as we will not be liable for any losses incurred. Your capital may be at risk
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