Bitcoin price reaches $23.4K on 4.6% gains amid ‘very mixed’ outlook

Bitcoin (BTC), which rebounded overnight to Aug. 5, saw a new trendline reclaim open the door for further gains.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

Daily BTC pricechart shows “tentative long signal”

Cointelegraph Markets Pro and TradingView data showed that BTC/USD bounced off a local bottom at $22,400, adding around 4.6%.

The pair reversed their direction at the key bid support on Binance, which helped avoid a larger loss of the 200-week moving mean (MA) at $22,800.

Bulls remained uncertain about the key zone, but a reclaim the 21-period MA on daily charts gave Material Indicators an opportunity for optimism.

It told Twitter followers that BTC/USD may not generate a long signal at the daily candles close.

It helps if you post the chart with it. It was well worth the wait. #BTC won the 21-DMA, and Trend Precognition A2+ started flashing a new signal. It will remain tentative until the D close. pic.twitter.com/gpTSxrikeT
— Material Indicators (@MI_Algos), August 5, 2022

Rekt Capital analyst and trader Rekt Capital expressed concern over Bitcoin’s inability to turn the 200-week MA into support for this bear market.

He stated that BTC had historically been able generate enormous buy-side interest at 200-week MA.

“But, if $BTC fails in the short-term to test the MA, it would likely serve as additional evidence that this recovery merely serves as relief.”

BTC/USD 1-Week Candle Chart (Bitstamp), with 200-week MA. Source: TradingView

QCP Capital, a trading firm, was similarly conservative in its outlook on prices. It sent its most recent market update to Telegram subscribers and stated that the overall picture was “very mixed.”

QCP pointed out complex macro triggers and stated that the United States Federal Reserve’s Monetary Policy would be a key market-moving factor moving forward. It noted that Jerome Powell, Fed Chair, had not reached consensus on the pace and scope for future key interest rate increases.

“Economic data worldwide is pointing towards poor growth and a forthcoming global recession,” the update stated. It also highlighted the upcoming Consumer Price Index (CPI), inflation data for July, which will be released on August 10.

“We believe that markets will continue to trade sideways and be sensitive to economic data. Next Wednesday’s US CPI will be the most important.

Ethereum’s strength fails to convince

Altcoins include Ether (ETH), and other large-cap tokens that joined the relief push for Bitcoin higher.

Related: Three key metrics for Ether derivatives suggest that $1,600 ETH support is weak

ETH/USD was at $1,665 as of the writing. ETH/BTC failed to break resistance near the 0.075 mark following a second retest.

BINANCE: ETH/BTC 1-day candle charts Source: TradingView

Concerns were growing about the possibility of an uneasy hard fork, as the Ethereum merger is just a month away.

QCP stated that the ETH merger, which is set to take place in September, is the most immediate and pressing risk in crypto markets.

The market had “started pricing in the possibility of material hard forks,” it said.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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