A push to the top of the intraday trading range puts Bitcoin in line for a bullish flag on the daily timeframe.
Bitcoin (BTC) rallied the night before August 5 as a fresh trendline rally opened the door for more gains.
Hourly candlestick chart BTC/USD (Bitstamp). Source: Trade View
Daily BTC price chart gives “preliminary” long signal
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD recovering from the local low at $22,400, gaining about 4.6%.
The pair reversed right off key demand support on major exchange Binance, helping avoid a major loss from the 200-week moving average (MA) around $22,800.
While this key zone remained uncertain for the bulls, the recovery of the daily chart’s 21-period moving average provided some optimism for online analytical resource Material Indicators.
BTC/USD may fail to trigger long signals on the daily candle close, Twitter followers have been told.
However, trader and analyst Rekt Capital remained cautious about turning the 200-week moving average into solid support for this bear market given Bitcoin’s poor record.
“Historically, BTC has been able to generate tremendous interest from buyers at the 200-week moving average,” he argued:
“But if $BTC fails to retest the MA in the near-term, it will likely serve as further evidence that this rally is just relief.”
Weekly BTC/USD (Bitstamp) candlestick chart with 200 week ma. Source: Trade View
Equally conservative in its price forecast was trading firm QCP Capital, which told Telegram channel subscribers in its most recent market report that the overall picture was “very mixed.”
QCP pointed to complex macroeconomic triggers and said Federal Reserve monetary policy will be a critical factor in determining market moves going forward. He noted that Fed Chair Jerome Powell had failed to reach consensus on the pace and size of future interest rate hikes.
“Global economic data points to weak growth and a looming global recession,” reads the update, which highlights upcoming July consumer price index (CPI) inflation data, due Aug. 10:
“We continue to believe markets will trade sideways and be sensitive to any economic data release. US CPI next Wednesday will be the next big thing to watch.”
The strength of Ethereum is not convincing
As far as altcoins go, Ether (ETH) and other large-cap tokens have joined the Bitcoin rally.
Also Read: 3 Key Ethereum Derivatives Metrics Suggest ETH Support at $1,600 is Expired
At the time of writing, ETH/USD is hovering around $1,665, with ETH/BTC still failing to clear resistance closer to 0.075 after a second retest.
ETH/BTC 1-day candlestick chart (Binance). Source: Trade View
Roughly a month before the Ethereum merger, there were also growing concerns about the likelihood of a controversial network hard fork.
“A more immediate and immediate risk in the cryptocurrency markets is the ETH merger planned for September,” continued QCP.
He added that markets have already “begun to examine the possibility of a significant hard fork.”