Bitcoin experienced its highest price level since February in July closing the month in green. But this positive rally did not continue into the next month as the price saw a low of $22,500 on August 4.
Bitcoin seemed to have recovered when it crossed the $24,000 level on Monday. Since then, bitcoin has gone below this level and settled near $23,800. As investors wait for the latest inflation numbers, some volatility is expected in the next hours. But there is still hope that inflation numbers are coming down and bitcoin continues its four day rally. The total cryptocurrency market cap stood at $1.12 trillion, up from $1.05 trillion a week ago.
After a clear move above the resistance level of $23,500, bitcoin started a fresh increase and has continued to trade above this level and the 100 hourly simple moving average. A price high was formed near $24,285 but the bears got the upper hand.
Although the bitcoin price dropped, it remained stable above the $23,600 level. On the hourly chart of the BTC/USD pair, a key bullish trend line is forming with support near $23,500. An immediate resistance lies at $24,000 and the next major resistance is near the $24,200 level. Above this the bulls can now aim for a next price target of $25,000.
If Bitcoin fails to clear the $24,000 resistance zone, it could begin a downward break to $23,300. As of publishing this article, the bitcoin price has already dropped below this level.
On a positive note, there are still some bullish signals to look out for. Data from Glassnode shows that on August 8, supply which was previously dormant for about three years rose to a new all-time high of 38.426%.
Another positive indicator for the bulls that they are still in control is that the relative strength index (RSI) is in the positive territory and the 20-day exponential moving average (EMA) is sloping up. An important level to watch out for is at $24,668 because this is the midpoint of the 42 percent crash and a break below could drag the price to the 50-day simple moving average and put the bears back in control.
For the past two months, bitcoin has been trading below $30,000 and Mike Novogratz CEO of Galaxy Digital does not think that this is likely to change anytime soon. He expects the price to continue trading in the range between $20,000 and $30,000 for a while, adding that investors should be grateful that it does not drop below $20,000.
Novogratz believes that the lack of institutional flows into the crypto industry is one of the factors holding the BTC price back and that bitcoin will need some time to recover, turn bullish and restore confidence among investors.
