Bitcoin (BTC) closed lower on August 12 as a widely expected comedown from a two-month high began to take shape.
The 200-week moving average becomes the pivot
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD on Bitstamp fell to $23,615 before the day’s Wall Street open, marking a 24-hour loss of about 5.2%.
The pair hit its highest level since June 13 as enthusiasm over falling US inflation combined with news that the world’s largest asset manager, BlackRock, was launching a private bitcoin fund.
While some commentators hoped for Bitcoin to handle resistance to $30,000 as a result, others were cautious, with doubts that fresh declines may remain.
Target 1 hit https://t.co/iBA8qRrEOq
— Crypto Tony (@CryptoTony__) August 12, 2022
“Volume is dying. Channels are not impulses but corrections,” popular trading account Il Capo of Crypto wrote In the latest update of the day.
A further post reinforced the idea that the recent gains were part of a “bear market rally”.
Fellow trader Jiban, meanwhile, drew fresh attention to Bitcoin’s 200-week moving average (MA) currently near $23,000.
After regaining it during the run-up, a key bear market support level is now fast approaching as the spot price weakens.
“If the 200 MA is rejected, prepare for some drop,” he said warned Part of the new post of the day.
Ethereum is “very strong”
Striking a more positive tone, meanwhile, crypto ed Bitcoin and the biggest altcoin Ethereum (ETH) stuck to forecasts of higher gains.
Related: Coming soon: ETH devs push date for merger
After calling a trip to $1,900 for ETH/USD, a breakout to $29,000 is still on the cards for BTC/USD, he said.
— Ed_NL (@Crypto_Ed_NL) August 12, 2022
In an accompanying YouTube update, CryptoEd added that, given a retracement ahead, an appropriate long position for BTC would be $23,400.
“Do I have anything bearish? I think only if we go below $22,000 and we have a bearish retest of that level,” he continued.
As for Ethereum, fellow trader TechDev explained Price action is “very strong,” with ETH/USD retrieving its 20-week exponential moving average while BTC/USD “still struggling” against the 10-week parity.
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