Author: Coinposters

On August 5, Bitcoin (BTC) market saw a new rejection at the $23,500 resistance level. This occurred as United States stocks were unable to embrace unexpectedly good payroll statistics.

As the market remained inside its intraday trading range, data from Cointelegraph Markets Pro and TradingView tracked BTC/USD. Bears maintained the market in this range.

Despite the fact that U.S. payrolls for the month of July came in at double the projected levels, Wall Street began with a whimper. The peculiar response led some observers to argue that the data did not really reflect that the economy was strong; rather, they indicated that current employees were taking on second jobs as a result of inflation.

“The addition of 528K jobs in July suggests that the majority of the new jobs went to those who already had work,” gold bug Peter Schiff commented. “Since the labor force participation rate decreased to 62.1, this means that most of the new jobs went to people who already had jobs.”

“As real earnings continue to fall, many people are forced to take on additional jobs in order to make ends meet. If the employment market were robust, a single position would be sufficient.
Schiff was not the only one to have concerns over the current situation of employment; Wealthion CEO Adam Taggart was one of the individuals who voiced their mistrust.

In the meanwhile, Kyle Bass, chief investment officer at Hayman Capital Management, remembered the Federal Reserve’s optimistic stance on employment in the years leading up to the Great Financial Crisis of 2008.

Bitcoin market has bounced back from a drop below $23,000 to retarget range highs as of the time this article is being written. Meanwhile, the S&P 500 and the Nasdaq Composite Index both started the day off with a little loss until a relief rally entered the picture.

Traders of Bitcoin, in the meanwhile, were considering the likelihood of a new leg down as the price continued to be rejected at $24,500 many times.

Cointelegraph Markets Pro and TradingView data indicated that Bitcoin (BTC) will maintain $24,000 as resistance until July 30.

In the second part of the week, the pair benefited from macro tailwinds across risk assets, including a strong finish for U.S. stocks. The S&P 500 and the Nasdaq Composite Index each gained 4.1% and 4.6% during the last week, respectively.

In light of the likelihood that off-peak trading would trigger turbulent circumstances at weekly and monthly closing as a result of less liquidity, experts cautioned that anything might occur between now and July 31.

“Like usual, I’ll just observe the market till the end of the week,” Josh Rager said.

In the present market environment, it is difficult to enter substantial trades, however, there may be a few outliers that continue to perform strongly over the weekend.

Others focused their attention on the importance of the present spot price levels, which are above the 200-week moving average (MA) at $22,800. A Bitcoin weekly close above this trendline would be unprecedented since June.

Due to “overbought” circumstances, however, the well-known trader Roman predicted a rebound to at least $23,000 in the immediate term.

The Crypto Dread & Greed Index reached its highest level since April 6 after departing its longest-ever stretch of “severe fear.” Optimism continued to rise throughout crypto markets throughout the week, reaching its highest level since April 6.

The Index entered “neutral” area for the day at 45/100.

Regarding the next month, Cointelegraph writer Michal van de Poppe said that stock performance will continue to foster favorable circumstances for a cryptocurrency recovery.

August was expected to be a calm month for U.S. macro triggers since the Federal Reserve was not planning to modify policy until September.

With the next Consumer Price Index (CPI) reading coming on August 10, the possibility of inflationary acceleration persisted. This Monday, the European Union released its highest-ever estimate for the eurozone’s monthly inflation, at 8.9 percent.

In the preceding week, Bitcoin price rose from $20k to as much as $22,000, thanks to an almost flawless start. Bitcoin’s upward trend continued through the second day of the week until it hit a correction at $23,800.

During Wednesday’s trading, Bitcoin $24,000 level of resistance was broken. Market panic sparked a halt to the upward trend after a negative announcement. A Tesla bounced it.

According to the automaker, the majority of their bitcoins were sold in the second quarter. Customers and other shops who had taken pleasure in the company’s position on the digital currency were surprised by this development.

Since the market is fearful, BTC’s price has fallen and is unable to shake off the current pessimistic atmosphere. Despite this, the coin’s value dropped below $21k just a few minutes before publication.

There are numerous signs that the cryptocurrency will continue to decline in the near future. The Moving Average Convergence Divergence (MACD) is an example of one. A closer look at the indicators suggests that it may have a bearish divergence in a few days.

If, for example, the 12-day EMA dips below the 26-day EMA in the next 48 hours, it will meet. There is a chance that bitcoin will go below $20k if this scenario occurs. An additional danger is looming at the $19k level of support.

Even so, a shift in market mood is possible, changing the aforementioned prognosis. Coins such as Bitcoin are likely to resume their upward trend and reach $22k support. After that, we may expect to see more price hikes.

At the moment, the price of bitcoin has fallen below the pivot point. Since the asset has no obvious future, it’s classified as negative.