Bitcoin (BTC) fell sharply on Aug. 19 as the height of every week’s sideways motion resulted in disappointment for bulls.
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Supply: TradingView
New lows “solely a matter of time
Knowledge from Cointelegraph Markets Professional and TradingView adopted BTC/USD because it fell 6.2% in a single hourly candle.
In response, merchants have been hoping {that a} rebound may permit consolidation above the present spot worth level, which was beneath $22,000 on the time of writing.
“Nicely hopefully that was on the lookout for liquidity in any other case it is over,” a somber Crypto Chase advised Twitter followers.
Crypto accountmate Il Capo, which had lengthy forecast a return to decrease ranges, needed to come to phrases with new lows being “solely a matter of time.”
A consolidation beneath $22,500, he warned in his newest replace, can be “very bearish.”
$BTC
Second choice performs out. Any check of 23500 as resistance is an efficient promoting alternative.
Consolidation beneath 22,500 (clear break + use level as resistance) can be very bearish = 21,000 or decrease
New lows are solely a matter of time. https://t.co/MzxrDCZuiZ pic.twitter.com/I5PatYduNW
— il Capo Of Crypto (@CryptoCapo_) August 19, 2022
Earlier than the drop, analyst Venturefounder mentioned that any worth beneath $23,000 is a “honest purchase worth in the long run,” including that Bitcoin is unlikely to have exited its bear market but.
The Relative Energy Index (RSI), nonetheless hovering close to all-time lows, speaks to the extent to which BTC/USD is oversold, he argued.
Nonetheless, there have been indicators of shopping for rising beneath key bear market assist ranges, together with the 200-week transferring common and key whale entry ranges.
BTC/USD 1 week candlestick chart (Bitstamp) with 200 week transferring common. Supply: TradingView
In accordance with on-chain analytics agency CryptoQuant, trade outflows already totaled 21,500 BTC within the first hours of Aug. 19.
Bitcoin trade flowchart. Supply: CryptoQuant
Ether traces August good points
For altcoins, the domino impact of Bitcoin’s return to a three-week low has been predictably sturdy.
Associated: Choices knowledge exhibits Bitcoin’s short-term uptrend is in jeopardy if BTC falls beneath $23,000
Ether (ETH), the biggest altcoin by market cap, is down 5.2% on the time of writing, trading round $1,750.
ETH/USD 1-Day Candlestick Chart (Binance). Supply: TradingView
Elsewhere, different main tokens misplaced greater than 11%, with Dogecoin (DOGE) being the worst performer within the high ten, down 13.6%.
“Bear bias now except $1790 is reclaimed/flipped to assist,” Crypto Chase added in a separate tweet about ETH.
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