Bitcoin (BTC) goes into another key macro week in the United States with a welcome break to the upside.
After avoiding a now-familiar breakdown around the weekly close, BTC/USD is surging higher at the time of writing on Aug. 8 to once more tackle resistance in place for two months.
Can the bulls win out? Momentum appears to be strong across crypto, but a host of potential stumbling blocks lie in the way.
With fresh U.S. inflation data due, the macro picture could yet upset the status quo, while sellers likewise show no sign of budging to allow reclaim of levels above $25,000.
Amid continued claims that Bitcoin is enjoying nothing more than a “bear market rally,” Cointelegraph takes a look at the state of play on the market as the new week begins.
These five factors will be worth bearing in mind when considering where Bitcoin price action could be going over the coming days.
BTC seals 2nd week above key bear market support
Unlike recent weeks, Bitcoin allowed traders to breathe a sigh of relief at the Aug. 7 weekly close.
Instead of declining at or immediately after the candle close, BTC/USD instead began gaining, these gains including an impressive hourly candle, which saw almost $500 added.
The close in itself was impressive, constituting Bitcoin’s highest weekly candle close since June — a firm break from the previous weekly downtrend — data from Cointelegraph Markets Pro and TradingView shows.
In addition, BTC’s price defended its key 200-week moving average (MA) two closes in a row, cementing the likelihood of that trendline now forming support. This comes despite multiple retests during the week, with the 200-week MA sitting at around $22,900.
The market was spared the craziness and #Bitcoin D and W candles closed as the Trend Precognition algos predicted. Bear Market Rally continues. https://t.co/anTpoYD9kK
— Material Indicators (@MI_Algos) August 8, 2022
Prior to the close, some were already predicting volatility.
im surprised the market hasn’t moved yet
Maybe will this week#Bitcoin— Kevin Svenson (@KevinSvenson_) August 7, 2022
For popular trading account TraderSZ on Twitter, this would take the form of a “big violent move,” one which ended up being to the upside.
“I know it’s hard to convince you that $BTC has touched the Bottom. But you can’t ignore it. Never Break This Line in History,” fellow account Jibon added alongside a weekly chart featuring…
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