Bitcoin stages a recovery toward a key resistance but fails to break through, and BTC price action is giving some cause for optimism.
Bitcoin (BTC) recovered above $29,000 on Aug. 8 as one trader eyed a potential breakout already underway.
BTC price teases falling wedge breakout
Data from Cointelegraph Markets Pro and TradingView followed a modest BTC price rebound after it set local lows of $28,670.
Still in a tight range, Bitcoin largely followed United States equities during the Aug. 7 Wall Street trading session.
Despite a lack of enduring momentum in either direction, market participants looked for signals that a return of some sort of trend could already be here.
For popular trader Jelle, these took the form of a potential falling wedge breakout on daily timeframes.
“This current formation has a target of $32,000. Can it break the key resistance?” he queried in part of the day’s analysis.
The wedge in question began at the start of July and marks Bitcoin’s second in as many months, another being in place from April toward the end of June.
Michaël van de Poppe, founder and CEO of trading firm Eight, called the previous day’s downside a “standard correction.”
“Immediately flipped back, decent daily candle. Let’s see what CPI will bring on Thursday,” he added.
Van de Poppe referenced the main macro event of the week — the July print of the U.S. Consumer Price Index (CPI) — which is traditionally a crypto market volatility catalyst.
On intraday timeframes, the picture was mixed as ever, as a game played out between market makers and takers on exchanges.
$BTC
— Skew Δ (@52kskew) August 8, 2023
Takers cut & sold what was bought earlier https://t.co/8plHMTnbEu pic.twitter.com/DtxKDjIxrF
“Failure to breakdown forced hands especially from spot takers to be bid especially since spot takers led the sell off in the first place (relating to the spot buying around $29K),” popular trader Skew explained.
Analysis: Bitcoin “close to being oversold”
In a more optimistic market summary, Yann Allemann and Jan Happel, co-founders of on-chain analytics firm Glassnode, suggested that the sub-$28,000 dip had more significance as a local bottom than many realized.
Related: Bitcoin price can go ‘full bull’ next month if 200-week trendline stays
As per the Risk Signal metric, Bitcoin is at its most “high-risk” trading level for several months.
Coupled with a neutral signal on altcoins amid overall volatility near its lowest-ever values, the market is ripe for galvanized bulls to step in, Glassnode argued.
“Bears in control, but getting exhausted,” part of an X (formerly Twitter) post featuring the relevant charts read.
“Bitcoin is close to being oversold, we’re going to tap the liquidity pool (demand) around $28.5k. This could be the reversal we were hoping for.”
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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