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Wednesday, August 9, 2023

[New post] Bitcoin hits $30.2K August high amid warning longs ‘chasing’ BTC price

Site logo image Crypto Breaking News posted: "Bitcoin (BTC) consolidated at a key flip zone on Aug. 9 as BTC price strength staged a sudden return.BTC/USD 1-hour chart. Source: TradingViewBTC price toys with $29,700 "party" levelData from Cointelegraph Markets Pro and TradingView showed BTC/USD tradi" Crypto Breaking News

Bitcoin hits $30.2K August high amid warning longs 'chasing' BTC price

Crypto Breaking News

Aug 9

Bitcoin (BTC) consolidated at a key flip zone on Aug. 9 as BTC price strength staged a sudden return.

BTC/USD 1-hour chart. Source: TradingView

BTC price toys with $29,700 "party" level

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD trading near $29,800 after a surge during the previous day's Wall Street trading hours.

That followed a recovery from local lows under $28,700 and topped out only after a trip to $30,210 — Bitcoin's highest August price so far.

The rapid change in mood soon impacted market participants' expectations for the market.

"That indeed was the higher low, Bitcoin continues to maintain a bullish market structure," popular trader Jelle said in part of an X post about the sub-$28,000 run.

"Needs to break $32,000 from here, let's see if this bounce has any legs."

That indeed was the higher low, #Bitcoin continues to maintain a bullish market structure.

Needs to break $32,000 from here, let's see if this bounce has any legs.

What are we thinking boys? https://t.co/dDi723NBhY pic.twitter.com/zEDOCTJhW6

— Jelle (@CryptoJelleNL) August 9, 2023

Jelle additionally noted that on one-day timeframes, BTC/USD had completed a bullish cross on the moving average convergence/divergence indicator.

"Another item we can add to the list of bullish signals," he commented after a similar one-month move at the end of July.

The day prior, Michaël van de Poppe, founder and CEO of trading firm Eight, meanwhile, stressed the significance of $29,700.

"Bitcoin party starts when we break $29,700. Until then it's just consolidation," part of the day's analysis argued, with van de Poppe subsequently adding that Bitcoin was close to doing so.

Continuing, popular trader and analyst Rekt Capital remained cool on the implications for BTC price strength on weekly timeframes.

"BTC is pressing beyond the ~$29250 level (black) which is positive. But historically, we've seeing upside wicking beyond this level to the ~$29900-$30100 resistance area," he wrote alongside a chart showing relevant features.

"This time so far, BTC has upside wicked to ~$30200. Bearish is the rejection is strong enough to push price down below ~$29250 and Weekly Close below there. However, if BTC would be able to dip into ~$29250 and hold it as support, that would be a more bullish price development."

BTC/USD annotated chart. Source: Rekt Capital/X

Bitcoin whales get active

Analyzing the impetus for the spike higher, observers soon noted increased buying among various classes of Bitcoin whales.

Related: Bitcoin price can go 'full bull' next month if 200-week trendline stays

#FireCharts 2.0(beta) shows the moment Purple Whales decided to convert a $20M #BTC bid ladder into market orders that started this rally yesterday. Purple continued buying upwards of $50M so far, meanwhile, a Brown Mega Whale just joined the party with a $2M market buy order as… pic.twitter.com/v1HM1QcR97

— Material Indicators (@MI_Algos) August 8, 2023

Popular trader Skew kept an eye on derivatives markets, covering the push-pull between bulls and bears ongoing at the time of writing.

Shorts giving up already?

This bounce here on LTF is driven by shorts closing out on coin margin & usdt margin

OI down & perp delta / CVD up

letting this LTF range balance out some more$BTC

— Skew Δ (@52kskew) August 9, 2023

Skew further noted that whales had been using liquidity to sell BTC, adding that late longs could be "chasing" the market.

"Whales require quite thick liquidity to exit or close positions & most often this is during a squeeze event," part of his latest X post stated alongside exchange data.

Bitcoin exchange data annotated charts. Source: Skew/X

Magazine: Deposit risk: What do crypto exchanges really do with your money?

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.


Source: Cointelegraph.com


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