Bitcoin has reached a new high in August, hitting $30.2K. This surge in price has sparked warnings about longs ‘chasing’ the BTC price. As Bitcoin traders become increasingly bullish, the question arises: can the bulls maintain their course and keep pushing the price higher?
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BTC Price Strength Returns at Key Flip Zone
BTC price has consolidated at a key flip zone on August 9th, as BTC price strength made a sudden return. After a surge in price during the previous day’s Wall Street trading hours, BTC/USD is trading near $29,800. This recovery follows a period of local lows under $28,700 and a peak at $30,210, which is the highest price Bitcoin has reached in August so far.
The rapid change in mood has had a significant impact on the market participants’ expectations. Popular trader Jelle noted that Bitcoin continues to maintain a bullish market structure, with the need to break $32,000 for further upward momentum. On one-day timeframes, BTC/USD has completed a bullish cross on the moving average convergence/divergence indicator, adding to the list of bullish signals.
Bitcoin Bulls Stay the Course
Michaël van de Poppe, founder and CEO of trading firm Eight, emphasized the significance of the $29,700 level. He stated that the Bitcoin party starts when the price breaks $29,700, and until then, it’s just consolidation. Van de Poppe further added that Bitcoin is close to breaking this level, suggesting a potential continuation of the bullish trend.
Rekt Capital, a popular trader and analyst, remained cautious about the implications for BTC price strength on weekly timeframes. While BTC is pressing beyond the ~$29,250 level, indicating positivity, historical data suggests that upside wicking beyond this level to the ~$29,900-$30,100 resistance area is common. Rekt Capital believes that if BTC can dip into ~$29,250 and hold it as support, it would be a more bullish price development.
Bullish Signals on One-Day Timeframes
Bitcoin whales have become active recently, contributing to the surge in price. Skew, a popular trader, highlighted that whales have been using liquidity to sell BTC, which may indicate their interest in exiting or closing positions. He also suggested that late longs could be “chasing” the market, trying to catch up with the price increase.
Significance of $29,700
The $29,700 level has been a key focus for traders and analysts. Many see it as a crucial level that needs to be surpassed for a sustained upward move. If Bitcoin can break this level, it could signify the start of a strong bullish phase. On the other hand, failure to break and hold above $29,700 may lead to further consolidation or even a bearish reversal.
Implications for BTC Price Strength on Weekly Timeframes
Analyzing the weekly timeframes, it is crucial to consider the historical resistance areas and the potential for upside wicking. While BTC has shown strength in pushing beyond the ~$29,250 level, it has often faced resistance at the ~$29,900-$30,100 range. This resistance area has proved to be a significant hurdle for Bitcoin in the past. Therefore, it is important to monitor if BTC can break and hold above this range to determine its future price strength on the weekly timeframes.
Bitcoin Whales Get Active
Bitcoin whales, or large holders of BTC, have been active in the market, contributing to the recent surge in price. The moment when purple whales decided to convert a $20 million BTC bid ladder into market orders was observed, kickstarting the rally. Additionally, a brown mega whale joined the party with a $2 million market buy order. The increased buying activity among Bitcoin whales indicates their confidence in the ongoing uptrend.
Push-Pull Between Bulls and Bears
The derivatives markets have been witnessing a push-pull dynamic between bulls and bears. Short positions have been closing out, leading to a bounce in the price as traders cover their positions. This bounce is driven by shorts closing out on coin margin and USDT margin. It is important to monitor this tug-of-war between bulls and bears to gauge the market sentiment and potential price movements.
Whales Using Liquidity to Sell BTC
The use of liquidity by whales to sell BTC has been observed in the market. Whales often require thick liquidity to exit or close positions, and they tend to take advantage of squeeze events to do so. This indicates that some whales may be seeking to secure profits or reduce their exposure to BTC. It is essential to monitor the behavior of whales, as their actions can influence market sentiment and price movements.
Late Longs ‘Chasing’ the Market
Late longs refer to traders who enter the market when the price has already made a significant move upward. In the current Bitcoin rally, there may be traders who are chasing the market, trying to catch up with the price increase. While this can lead to further buying pressure and upward momentum, it is important to exercise caution, as late longs may also contribute to increased volatility and potential market corrections.
Increased Buying Among Bitcoin Whales
The recent surge in Bitcoin price has attracted increased buying activity among Bitcoin whales. This suggests that large holders of BTC have confidence in the ongoing bullish trend and are actively accumulating more coins. The participation of whales in the market can have a significant impact on price movements and market sentiment. It is important to monitor their behavior to gain insights into the overall market trend.
In conclusion, Bitcoin has reached a new high in August, hitting $30.2K. While there are warnings about longs ‘chasing’ the BTC price, bullish signals and increased buying among Bitcoin whales indicate a strong upward momentum. Traders and analysts are closely monitoring key levels, such as $29,700 and the resistance area of ~$29,900-$30,100, to determine the future direction of the BTC price. As the push-pull between bulls and bears continues, it is essential to stay informed and exercise caution when making investment decisions.
