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Bitcoin reaches $30.2K in August, as caution is advised for those pursuing BTC price increases.
On August 9, Bitcoin (BTC) stabilized at a significant flip zone as the price strength of BTC experienced a sudden resurgence.
BTC/USD 1-hour chart. Source: TradingView
BTC price hovers around $29,700 “party” threshold
Data from Cointelegraph Markets Pro and TradingView indicated that BTC/USD was trading close to $29,800 following a rise during the previous day’s Wall Street trading session.
This came after a rebound from local lows below $28,700, peaking at $30,210 — Bitcoin’s highest price in August to date.
The swift shift in sentiment quickly influenced market participants’ expectations.
“That was indeed the higher low; Bitcoin continues to uphold a bullish market structure,” noted well-known trader Jelle in a post on X regarding the sub-$28,000 movement.
“It needs to surpass $32,000 from this point; let’s see if this bounce has any momentum.”
That was indeed the higher low, #Bitcoin continues to uphold a bullish market structure.
It needs to surpass $32,000 from this point; let's see if this bounce has any momentum.
What are we thinking, guys? https://t.co/dDi723NBhY pic.twitter.com/zEDOCTJhW6— Jelle (@CryptoJelleNL) August 9, 2023
Jelle also pointed out that on daily timeframes, BTC/USD had executed a bullish crossover on the moving average convergence/divergence indicator.
“This is another addition to the list of bullish indicators,” he remarked following a similar one-month movement at the end of July.
The day before, Michaël van de Poppe, founder and CEO of trading firm Eight, emphasized the importance of the $29,700 level.
“The Bitcoin party commences when we breach $29,700. Until then, it’s merely consolidation,” part of his analysis stated, with van de Poppe later noting that Bitcoin was nearing this threshold.
Continuing, well-known trader and analyst Rekt Capital maintained a cautious stance regarding the implications for BTC price strength on weekly timeframes.
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“BTC is pushing past the ~$29,250 level (black), which is a positive sign. However, historically, we have observed upward wicks beyond this level to the ~$29,900-$30,100 resistance zone,” he wrote alongside a chart illustrating relevant features.
“So far, BTC has wicked up to ~$30,200. It would be bearish if the rejection is strong enough to drive the price below ~$29,250 and result in a Weekly Close beneath that level. However, if BTC can dip to ~$29,250 and maintain it as support, that would indicate a more bullish price development.”
BTC/USD annotated chart. Source: Rekt Capital/X
Bitcoin whales become active
In examining the cause for the upward spike, analysts quickly observed heightened buying activity among various categories of Bitcoin whales.
Related: Bitcoin price can go ‘full bull’ next month if 200-week trendline remains intact
#FireCharts 2.0(beta) illustrates the moment Purple Whales opted to convert a $20M #BTC bid ladder into market orders that initiated this rally yesterday. Purple continued purchasing upwards of $50M thus far, while a Brown Mega Whale just entered the scene with a $2M market buy order as… pic.twitter.com/v1HM1QcR97
— Material Indicators (@MI_Algos) August 8, 2023
Renowned trader Skew monitored the derivatives markets, highlighting the ongoing tug-of-war between bulls and bears at the time of writing.
Are shorts already capitulating?
This bounce here on LTF is driven by shorts closing out on coin margin & USDT margin.
Open Interest is down & perpetual delta / CVD is up, allowing this LTF range to balance out further $BTC— Skew Δ (@52kskew) August 9, 2023
Skew further mentioned that whales had been utilizing liquidity to sell BTC, suggesting that late longs might be “chasing” the market.
“Whales require substantial liquidity to exit or close positions, and this often occurs during a squeeze event,” part of his latest post on X indicated alongside exchange data.
Bitcoin exchange data annotated charts. Source: Skew/X
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This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should perform their own research before making a choice.
