Bitcoin has bottomed despite 'astonishing' BTC price action — Analyst
Bitcoin is due to offer nothing beyond “classic weekend chop,” signs of change on BTC price charts continue to flow in.
Bitcoin (BTC) further ground down volatility into Aug. 12 as “astonishing” BTC price action stayed in place.
Bitcoin: “Classic weekend chop” expected
Data from Cointelegraph Markets Pro and TradingView followed a flat Bitcoin trading environment as the weekend began.
After displaying only muted reactions to the week’s United States macroeconomic data prints, BTC/USD held firm near $29,500 — a key battleground between bulls and bears.
“Expecting just another classic weekend chop around the CME close price,” popular trader Daan Crypto Trades wrote in part of his latest analysis, referencing the closing price of CME Bitcoin futures markets at $29,465.
The lack of movement throughout the week meanwhile surprised longtime market participants, including Michaël van de Poppe, founder and CEO of trading firm Eight.
“Extremely astonishing PA on Bitcoin lately,” he summarized on the day.
“I’m still favouring upwards momentum to come and I think we’ve bottomed + are not getting that heavy correction. If we lose $29K however, then I’ll be a buyer at $28.2K. Flip $29.7K = party time.”
Investigating exchanges, Maartunn, a contributor to on-chain analytics platform CryptoQuant, eyed long positions appearing from Bitcoin whales.
Another massive long position; this time on #Deribithttps://t.co/yypUpVraIM https://t.co/rztixskt4a pic.twitter.com/AIlG6kwwey
— Maartunn (@JA_Maartun) August 12, 2023
For monitoring resource Material Indicators, however, the Binance BTC/USD order book signalled that the rangebound status quo would likely endure.
“Volatility might start percolating as we near the weekly Close/Open. Still feels like buy the dip, sell the rip conditions,” part of accompanying commentary stated.
BTC price approaches “historic compression”
Analyzing the lack of volatility on Bitcoin, the trading community reasoned that an equally powerful return to trend should result.
Related: Bitcoin price can go ‘full bull’ next month if 200-week trendline stays
“Bitcoin approaching historic 3W compression levels above 20 MA. Tick tock,” popular trader TechDev predicted, referencing the 20-period moving average on three-week timeframes.
An accompanying chart showed BTC price behavior following similar episodes in the past, these totaling just four since Bitcoin’s creation.
“Historic compression leads to historic expansion…imagine looking at this chart and thinking ‘yea, 10k incoming,'” fellow trader Credible Crypto responded.
“A ticking time-bomb till bear extinction.”
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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.
