Bitcoin (BTC) rebounded overnight on August 5, as a fresh trendline recovery opened the door for further gains.
The daily BTC price chart sets a “temporary” long signal
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD bouncing around $22,400 at the local base to add about 4.6%.
The pair reversed direction at key bid support on major exchange Binance, which would help avoid a more substantial loss to the 200-week moving average (MA) at around $22,800.
While that key zone remains uncertain for the bulls, a retracement of the 21-period MA on the daily chart led to optimism on On-Chain Analytics resource material indicators.
BTC/USD may not spark a long signal at the daily candle close, it told Twitter followers overnight.
It would help if I posted a chart with it. It was worth the wait. #BTC The 21-DMA was regained and the Trend Recognition A2+ Aglo started flashing a new signal. It will be temporary until D is closed. pic.twitter.com/gpTSxrikeT
— Object Indicators (@MI_Algos) August 5, 2022
Trader and analyst Rect Capital however expressed ongoing caution about Bitcoin’s poor track record in turning the 200-week MA into solid support for this bear market.
“Historically, BTC has been able to generate tremendous buy-side interest at the 200-week MA,” he said. Argued:
“But if $BTC fails to retest the MA in the short term, that will serve as further evidence that this recovery is just a fix.”
Similarly conservative in its price outlook is trading firm QCP Capital, in its latest market update to Telegram channel subscribers that the overall picture is “very mixed”.
Pointing to complex macro triggers, QCP said the United States Federal Reserve’s monetary policy will be a critical market-moving factor going forward. Fed Chair Jerome Powell noted that no consensus has been reached on the pace and extent of future key interest rate hikes.
“Economic data globally is pointing to poor growth and a looming global recession,” the update read, highlighting the upcoming consumer price index (CPI) inflation data for July due to be released on August 10:
“We think the markets will trade sideways and remain sensitive to economic data releases. Next Wednesday the US CPI will be key to watch.
Ethereum potential fails to convince
Among altcoins, Ether (ETH) and other large-cap tokens joined Bitcoin’s relief push higher.
RELATED: 3 Key Ether Derivatives Metrics $1,600 ETH Support Signals Lack of Strength
ETH/USD hovered around $1,665 at the time of writing, ETH/BTC however failed to break through resistance near the 0.075 mark after a second retest.
With the Ethereum merger about a month away, concerns are also growing about the possibility of a controversial hard fork of the network.
“The most pressing and immediate risk in the crypto markets is the ETH merger that will take place in September,” QCP continued.
It added that markets have already “started to price in the possibility of a material hard fork”.
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