Bitcoin has bottomed despite ‘astonishing’ BTC price action — Analyst

Bitcoin (BTC) additional ground down volatility into Aug. 12 as “astonishing” BTC rate action remained in place.BTC/ USD 1-hour chart. Source: TradingViewBitcoin: “Classic weekend chop” expectedData from Cointelegraph Markets Pro and TradingView followed a flat Bitcoin trading environment as the weekend began.After displaying just muted responses to the weeks United States macroeconomic information prints, BTC/USD held firm near $29,500– a crucial battlefield between bears and bulls.” Expecting just another classic weekend chop around the CME close price,” popular trader Daan Crypto Trades wrote in part of his newest analysis, referencing the closing price of CME Bitcoin futures markets at $29,465. BTC/USD annotated chart. Source: Daan Crypto Trades/X (formerly Twitter) The lack of motion throughout the week on the other hand shocked long time market individuals, consisting of Michaël van de Poppe, creator and CEO of trading firm Eight.” Extremely amazing PA on Bitcoin lately,” he summarized on the day. “Im still favouring upwards momentum to come and I think weve bottomed + are not getting that heavy correction. If we lose $29K however, then Ill be a buyer at $28.2 K. Flip $29.7 K = celebration time.” BTC/USD annotated chart. Source: Michaël van de Poppe/XInvestigating exchanges, Maartunn, a factor to on-chain analytics platform CryptoQuant, eyed long positions appearing from Bitcoin whales.Another huge long position; this time on #Deribithttps:// t.co/ yypUpVraIM https://t.co/rztixskt4a pic.twitter.com/AIlG6kwwey— Maartunn (@JA_Maartun) August 12, 2023

For keeping track of resource Material Indicators, nevertheless, the Binance BTC/USD order book signified that the rangebound status quo would likely sustain.”Volatility may begin percolating as we near the weekly Close/Open. Still feels like purchase the dip, sell the rip conditions,” part of the accompanying commentary stated.BTC/ USD order book information for Binance. Source: Material Indicators/XBTC rate methods “historical compression”Analyzing the absence of volatility on Bitcoin, the trading neighborhood reasoned that an equally powerful return to pattern should result.Related: Bitcoin cost can go complete bull next month if 200-week trendline stays”Bitcoin approaching historical 3W compression levels above 20 MA. Tick tock,” popular trader TechDev forecasted, referencing the 20-period moving average on three-week timeframes.An accompanying chart revealed BTC cost behavior following comparable episodes in the past, these amounting to just 4 considering that Bitcoins creation.”Historic compression causes historic growth … envision taking a look at this chart and thinking yea, 10k inbound,” fellow trader Credible Crypto responded. “A ticking time-bomb till bear extinction.”BTC/USD annotated chart. Source: TechDev/XMagazine: Deposit risk: What do crypto exchanges actually make with your money?This short article does not consist of investment advice or recommendations. Every investment and trading move includes risk, and readers need to perform their own research when making a decision.

Bitcoin (BTC) more ground down volatility into Aug. 12 as “amazing” BTC price action remained in place.BTC/ USD 1-hour chart.” Expecting just another traditional weekend slice around the CME close rate,” popular trader Daan Crypto Trades wrote in part of his newest analysis, referencing the closing cost of CME Bitcoin futures markets at $29,465. Tick tock,” popular trader TechDev forecasted, referencing the 20-period moving average on three-week timeframes.An accompanying chart revealed BTC cost habits following comparable episodes in the past, these totaling simply four given that Bitcoins development.

Other Questions People Ask

What does the analyst mean by Bitcoin has bottomed despite ‘astonishing’ BTC price action?

The analyst suggests that despite the recent volatility in Bitcoin's price, there are indicators that the market has reached a bottom. Michaël van de Poppe, a notable trader, believes that the price will not experience a significant correction below $29,000. He indicates that if Bitcoin can maintain levels above this threshold, it could lead to upward momentum in the near future.

How does the current BTC price action reflect on Bitcoin's market stability?

The current BTC price action, described as "astonishing," indicates a period of low volatility and range-bound trading around $29,500. This stability suggests that traders are waiting for a breakout or significant movement before making major decisions. Analysts like Daan Crypto Trades expect typical weekend fluctuations, but overall, the market appears to be consolidating rather than collapsing.

What are the implications of Bitcoin whales taking long positions?

The emergence of long positions from Bitcoin whales suggests confidence in Bitcoin's potential for upward movement. As highlighted by Maartunn from CryptoQuant, these large players are betting on a price increase, which can influence market sentiment positively. This activity may indicate that the market is preparing for a bullish trend, especially if it can hold above critical support levels.

Why is the concept of historical compression important for Bitcoin's future price movements?

Historical compression refers to periods of low volatility that often precede significant price movements. Traders like TechDev point out that Bitcoin is approaching historical compression levels, which have historically led to substantial growth. This pattern suggests that if Bitcoin can maintain its current range, it may soon experience a breakout, potentially leading to new highs.

What should investors consider when analyzing Bitcoin's current price action?

Investors should closely monitor key support and resistance levels, particularly around $29,000 and $29,700. The lack of volatility may create opportunities for strategic buying or selling based on market conditions. Additionally, keeping an eye on whale activity and broader market trends can provide insights into potential future movements in Bitcoin's price.