Bitcoin (BTC) soared above $29,000 today and one trader is already seeing a potential breakout.
BTC price shows breakout of falling wedge
After hitting a local low of $28,670, data from Cointelegraph Markets Pro and TradingView showed a minor rally in BTC price.
Bitcoin largely lagged behind US stocks, trading in a narrow range during yesterday’s Wall Street trading session.
Despite the lack of sustainable momentum in either direction, market participants are looking for signs that some sort of trend is returning.
For popular trader Jelle, this has taken the form of a potential falling wedge breakout on the daily time frame.
“This current setup targets $32,000. Will it be able to break the key resistance?”, the analyst asks,
This second question started in early July; The previous one is dated April, which ended at the end of June.
Michael van de Poppe, founder and CEO of trading firm ET, called the previous day’s decline a “standard correction.”
“With a good daily candlestick, it reversed immediately. Let’s see what CPI holds on Thursday”yes couple,
Van de Poppe referenced the key macro event of the week – the release of the US Consumer Price Index (CPI) for July – traditionally a catalyst for cryptocurrency market volatility.
On the intraday timeframe, the picture remained mixed as usual, with a game played out between market makers and buyers on the exchanges.
$BTC
takers bowed down and sold what was previously bought
$BTC
Takers cut & sold what was bought earlier https://t.co/8plHMTnbEu pic.twitter.com/DtxKDjIxrF– Skew Δ (@52kskew) 8 August 2023
“Failure to break forced buyers, especially spot buyers, to bid, especially since it was spot trading that caused the sell-off (in respect of spot purchases of approximately $29,000).”well-known trader explained oblique,
Analysis: Bitcoin ‘close to oversold’
In a more optimistic phase of the market, Yann Alleman and Jan Happel, co-founders of on-chain analyst firm Glassnode, suggested that the drop below $28,000 as a local low has more significance than many realise.
According to the Risk Signals metric, bitcoin is at its most “high-risk” trading level in months.
Glassnode argues that, with a neutral signal on altcoins, in an environment of overall volatility near all-time lows, the market is ready for a bullish intervention.
“The Bears Are In Control, But Are Tired”reads a post by X (formerly Twitter) which reports Graph in question.
“Bitcoin is close to oversold, we will tap the liquidity pool (demand) around $28,500. This could be the reversal we were hoping for.”
This article does not constitute investment advice or recommendations. Every investment and trade involves risk and readers should do their own research before making decisions.
Translation by Walter Rizzo
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