Known support areas are back on the radar after $25,000 proved too much for Bitcoin bulls.
Bitcoin (BTC) fell on August 12 as a widely anticipated pullback from two-month highs began to emerge.
BTC/USD hourly chart (Bitstamp). Source: Trading View
200-week moving average becomes pivot point
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD fell to $23,615 on Bitstamp ahead of Wall Street’s open on the same day, down about 5.2% over the past 24 hours.
The pair hit its highest level since June 13 on enthusiasm for a slowdown in US inflation coupled with news that the world’s largest wealth manager BlackRock is launching a private bitcoin fund.
While some commentators were hopeful that bitcoin would break the resistance closer to $30,000 as a result, others remained cautious, suggesting that a new downtrend could emerge.
“Tom is dying. Channels are not impulses, but corrections,” wrote popular crypto trading Il Capo in his latest update of the day.
“Most people expect 28,000 or more, but the biggest level is 25,000-25,500.”
Another post reinforced the notion that the recent rally was part of a “bear rally”.
In the meantime, his colleague Gibon has revisited Bitcoin’s 200-week moving average (MA), which is currently at $23,000.
A key bear market support level that had been rebounded early was now rapidly approaching as the spot price retreated.
“If the 200 MA drops, prepare to drop,” he warned in a new post the same day.
Ethereum remains ‘very strong’
Meanwhile, Crypto Ed has set a more positive tone, sticking to further gains for both Bitcoin and the largest altcoin, Ethereum (ETH).
Related: Previously Available: ETH Developers Push Merger Date
After the announcement of the move to $1,900 per ETH/USD, a breakout to $29,000 per BTC/USD is still around the corner, he said the same day.
In an accompanying YouTube update, Crypto Ed added that on the next pullback, a suitable long position for BTC would be $23,400.
“Is there a bearish sentiment for me? Just thinking if we break below $22K and have a bearish retest of that level,” he continued.
Referring to Ethereum, fellow trader TechDev described the price action as “very strong”, noting that ETH/USD has regained its 20-week exponential moving average while BTC/USD “still struggled with the 10-week equivalent” . .
Hourly candlestick chart ETH/USD (Binance). Source: Trading View
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