Bitcoin (BTC) stayed stubbornly anti-trend on Aug. 22 as $26,000 grew to become a magnet for intraday BTC price motion.
BTC price “dying chop” returns
Information from Cointelegraph Markets Pro and TradingView tracked a 3rd day of sideways efficiency for BTC/USD.
Regardless of being closely oversold, in keeping with relative power index (RSI) readings, Bitcoin refused to supply any type of restoration bounce from ranges final seen two months prior.
Market members had been stressed, with common dealer Jelle referring to intraday actions as the “dying chop.”
“At this stage it looks like a sport of hen to see who’s going to make a transfer to interrupt the chop,” monitoring useful resource Materials Indicators said.
Analyzing liquidity on the Binance BTC/USD order e book, Materials Indicators famous a broad lack of liquidity, rising the potential for a pointy transfer in both route.
“The market is ready to see if extra bid or extra ask liquidity goes to be interested in the vary,” it defined on X (previously recognized as Twitter).
“To date, we’re seeing small quantities of bid liquidity ladder up from $20k nearer to the energetic buying and selling zone, however no liquidity of any measurement (new or moved) has been stacked into the vary defending price from a Decrease Low.”
The implications had been nonetheless potentially very serious for bulls, with a decrease low (LL) apt to threat even the $20,000 assist going ahead.
“For sure, printing a LL on this TF has macro implications. Printing 2 LLs would push #BTC all the way down to sub $20k ranges,” Materials Indicators concluded.
RSI strengthens “V-shape restoration” thesis
Zooming out, hope remained that Bitcoin might rescue its total uptrend.
Associated: Bitcoin is in ‘new bull cycle’ — Metric that bottomed before 70% gains
In a devoted YouTube replace on Aug. 22, Michaël van de Poppe, founder and CEO of buying and selling agency Eight, noted the closely oversold indicators being generated by RSI.
On 12-hour timeframes, the RSI measured lower than 19 on the time of writing — close to its lowest ranges because the 2018 bear market backside. Each day ranges had been comparable, reaching their lowest because the March 2020 COVID-19 cross-market crash.
“Each time we see such a transfer, you get a kind of V-shape restoration again up, and it finds equilibrium on a better ground,” Van de Poppe stated about earlier BTC price flash crashes.
He added that it was “very doubtless” that Bitcoin might stage a comeback to concentrate on $26,500 or extra subsequent.
“Present #Bitcoin price motion jogs my memory of September 2020 — simply earlier than the beginning of the earlier bull market,” Jelle in the meantime suggested alongside a comparative chart.
“Absorption and slowly grind greater right here for some time — and I might see this play out equally.”
This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer includes threat, and readers ought to conduct their very own analysis when making a choice.
