Bitcoin (BTC) stayed stubbornly anti-trend on Aug. 22 as $26,000 turned a magnet for intraday BTC worth motion.
BTC/USD 1-hour chart. Supply: TradingView
BTC worth “loss of life chop” returns
Information from Cointelegraph Markets Professional and TradingView tracked a 3rd day of sideways efficiency for BTC/USD.
Regardless of being closely oversold, in accordance with relative power index (RSI) readings, Bitcoin refused to supply any type of restoration bounce from ranges final seen two months prior.
Market individuals have been stressed, with common dealer Jelle referring to intraday actions because the “loss of life chop.”
“At this stage it looks like a sport of rooster to see who’s going to make a transfer to interrupt the chop,” monitoring useful resource Materials Indicators mentioned.
Analyzing liquidity on the Binance BTC/USD order e-book, Materials Indicators famous a broad lack of liquidity, growing the potential for a pointy transfer in both route.
“The market is ready to see if extra bid or extra ask liquidity goes to be interested in the vary,” it defined on X (previously often known as Twitter).
“Up to now, we’re seeing small quantities of bid liquidity ladder up from $20k nearer to the energetic trading zone, however no liquidity of any measurement (new or moved) has been stacked into the vary defending worth from a Decrease Low.”
The implications have been nonetheless probably very severe for bulls, with a decrease low (LL) apt to threat even the $20,000 help going ahead.
“Evidently, printing a LL on this TF has macro implications. Printing 2 LLs would push #BTC all the way down to sub $20k ranges,” Materials Indicators concluded.
BTC/USD order e-book information for Binance annotated chart. Supply: Materials Indicators/X
RSI strengthens “V-shape restoration” thesis
Zooming out, hope remained that Bitcoin might rescue its general uptrend.
Associated: Bitcoin is in ‘new bull cycle’ — Metric that bottomed earlier than 70% features
In a devoted YouTube replace on Aug. 22, Michaël van de Poppe, founder and CEO of trading agency Eight, famous the closely oversold alerts being generated by RSI.
On 12-hour timeframes, the RSI measured lower than 19 on the time of writing — close to its lowest ranges for the reason that 2018 bear market backside. Each day ranges have been related, reaching their lowest for the reason that March 2020 COVID-19 cross-market crash.
“Each time we see such a transfer, you get a form of V-shape restoration again up, and it finds equilibrium on a higher flooring,” Van de Poppe mentioned about earlier BTC worth flash crashes.
He added that it was “very possible” that Bitcoin might stage a comeback to deal with $26,500 or extra subsequent.
BTC/USD 12-hour chart with RSI. Supply: TradingView
“Present #Bitcoin worth motion jogs my memory of September 2020 — simply earlier than the beginning of the earlier bull market,” Jelle in the meantime advised alongside a comparative chart.
“Absorption and slowly grind higher right here for some time — and I might see this play out equally.”
BTC/USD comparative chart. Supply: Jelle/X
This text doesn’t comprise funding recommendation or suggestions. Each funding and trading transfer entails threat, and readers ought to conduct their very own analysis when making a call.