Bitcoin (BTC) drifted close to $21,000 on Wall Road on Aug. 22 as the brand new week started with no restoration.

BTC/USD 1 Hour Candlestick Chart (Bitstamp). Supply: TradingView

European commodity surge hammers the euro

Information from Cointelegraph Markets Professional and TradingView confirmed that BTC/USD didn’t stage a comeback after final week’s 11.6% losses.

The pair marked new multi-week lows under $20,800 over the weekend and subsequently staged a modest rebound to succeed in $21,200 on the time of writing.

Issues over European markets and the upcoming Fed symposium in Jackson Gap contributed to bearish sentiment in danger belongings. The S&P 500 misplaced 1.8% inside two hours of opening, whereas the Nasdaq Composite Index misplaced 2.2%.

In Europe, gasoline and electrical energy costs rose once more on fears that provides from Russia could possibly be curtailed extra severely and before anticipated.

OOPS! The German benchmark electrical energy value rose on Monday by >25% to over €700 per megawatt hour for the primary time. The level is about 14 occasions the seasonal common over the previous 5 years. pic.twitter.com/gMQZkk7ncB

— Holger Zschaepitz (@Schuldensuehner) August 22, 2022

Because of this, the euro fell under par with the US dollar for the primary time since July.

“As summer time attracts to a detailed, the euro is underneath stress once more, partly as a result of the dollar is bid and partly as a result of the Damoclean sword hanging over the European economic system will not be going away,” wrote Equipment Juckes, international change strategist at Societe Generale, in a observe from quoted by Bloomberg.

As Cointelegraph reported, the euro has confronted a number of headwinds, with inflation nonetheless rising within the euro zone in July, not like in america.

Beneath 200-week shifting common “dangerous for bulls”

Analyzing the scenario, on-chain analytics useful resource Materials Indicators nonetheless had a silver lining for merchants on shorter timeframes.

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The weekend’s stoop had nonetheless seen the market maintain July lows, he famous, that means the 2022 “bear market rally” that took BTC/USD above $25,000 might nonetheless discover a return .

Nonetheless, the scenario favored bears so long as Bitcoin traded under its crucial 200-week shifting common (WMA) close to $23,000.

Defending the LL means the bear market rally might decide up steam once more if we get some good financial knowledge this week, however a have a look at the #BTC weekly chart exhibits indicators that any potential rally shall be short-lived. Dropping the 200 WMA is dangerous for the Bulls. When 50 and 100 WMAs cross, it is even worse. pic.twitter.com/j19Vp7SkiS

— Materials Indicators (@MI_Algos) August 22, 2022

One other put up confirmed knowledge from main change Binance’s order guide, with a few of the high quantity whales making an attempt to clear a sell wall simply above the spot value.

BTC/USD order guide chart (Binance). Supply: Materials Indicators/ Twitter

Dealer and analyst Rekt Capital took a equally bullish view over the long run, in the meantime arguing that purchasing BTC under $35,000 continues to be a “cut price.”

The realm round this value level represents a zone of high change quantity that may act as a serious hurdle if value motion goes higher.

In 2015, #BTC bottomed 547 days earlier than the halving

In 2018, $BTC bottomed 517 days earlier than the halving (crash in March 2020).

If Bitcoin will backside 517-547 days earlier than the upcoming April 2024 halving…

Then the underside shall be reached within the fourth quarter of this yr #Crypto #Bitcoin

— Rekt Capital (@rektcapital) August 22, 2022

Extra analysis from Rekt Capital nonetheless forecast a This autumn macro cycle backside if BTC/USD repeats the timing of earlier macro lows from 2015 and 2018.

The views and opinions expressed herein are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and trading transfer entails danger, you need to do your personal analysis when making a choice.