Bitcoin may still see ‘wild’ weekend as BTC price avoids key $22K zone

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Bitcoin may still see ‘wild’ weekend as BTC price avoids key K zone
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Bitcoin (BTC) focused on $21,000 ahead of the weekend, warning that volatility could still drain the market ahead of Monday.

BTC/USD 1 hour candle chart (Bitstamp). Source: TradingView

S&P 500 has second-best week of 2022

Data from Cointelegraph Markets Pro and TradingView shows that BTC/USD is broadly higher in the recent trading range after U.S. stocks strengthened this week.

As noted by market commentator Holger Zschaepitz, the S&P 500 had its second-best week of 2022, indicating a modest relief in risk assets.

Bitcoin is poised to end the week with a small gain, with its first weekly green candle since May — albeit a small one.

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Until then, however, according to the on-chain analytics resource Material Indicators (MI), anything can happen.

Referring to recent weekend price action, MI advises Twitter followers not to become complacent with insufficient trading volume on weekdays.

“If BTC can break above the 200 WMA, there is room to run,” read one part of the post.

“Wknds have been crazy, so fasten your seat belts. A retest of the lows could be as fast as $24,000.”

Charts of order book data from Binance, the largest global exchange, provide a glimpse into traders’ buying and selling plans. Below the spot price, there is little support on volume ahead of $19,000 and, conversely, huge resistance north of $22,000.

Binance BTC/USD order book data chart.Source: Material Metrics/Twitter

Various sources believe that this level marks the key 200-week moving average (WMA) for BTC/USD, which is necessary for the bears to pull back to change the trend.

Altcoins set for first green week since March

Altcoins were also quiet on the day, while seeing impressive weekly gains against a backdrop of gloomy macro markets.

Related: Ethereum price explodes as ‘bad news is good news’ for the stock

Several of the top 10 cryptocurrencies by market cap are around 30% higher than they were 7 days ago at the time of writing.

That includes ether (ETH), up 28% and hovering around $1,200.

In a dedicated order book post, MI noted that ETH/USD also retested the 200WMA, but the problem remains.

Elsewhere, Shiba Inu (SHIB) was up 50% from last week, while Polygon (MATIC) stole the show with a 70% weekly gain.

MATIC/USD 1-day candle (Binance). Source: TradingView

For Cointelegraph contributor Michaël van de Poppe, there are still good reasons to enter the crypto market.

“Judging from the investment thesis (all other things being equal), now is a good time to find the altcoin you want to own,” he told Twitter followers.

“In 2021, everyone dreams of being able to buy those at that low price. Now the opportunity comes and people are afraid to make decisions. Typical.”

On a weekly basis, the altcoin market cap gained $37 billion in a week, the first green candle since March.

Altcoin market cap 1-week candlestick chart. Source: TradingView

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk and you should do your own research when making a decision.



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