Bitcoin is struggling with a very important support level, the breakout of which has the right to result in strong declines. At the same time, another coin knocks out its all-time peak.
An unsettling end to the week
Analyzing Bitcoin’s price action today, it is necessary to pay attention to its behavior on the weekly interval. The first disturbing signal that strikes our eyes is the closing of the candle below the 2017 peak. Such a situation has the right to cause uncertainty. In doing so, we see the MACD momentum weakening, and Bitcoin staying below the first RSI resistance (dashed line). It is also worth noting that last week was the second consecutive week in which the leading cryptocurrency ended trading below the 200-week moving average (blue line).
Daily chart at odds with the weekly chart
Looking at the daily chart, on the other hand, we can notice some bullish signals. The first is the MACD, which is at a turning point that could initiate an upcoming bullish cross. Another is the RSI divergence, which in turn has reached the oversold area. It is not strong, and its spread still has the right to increase. Nevertheless, it is important to note it, because with the complicity of other signals, it can be played out earlier. Volume is a cause for concern. On Tuesday, despite the declines, it was higher than on the previous day, when increases were observed.
Potential price ranges appear to be very clear. Increases could result in testing the upward trend line from below, from which the decline occurred. Their continuation is an attack on the 200-week moving average. Declines risk reaching the ceiling of this year’s minima. These are located in the vicinity of $17,600.
BONE with a new ATH!
While Bitcoin and the rest of the cryptocurrency market are experiencing a real bear market, one of the tokens of the Shiba Inu family is even noting a perfect time. We are talking about BONE and its achievement of a new all-time record. In just one week, the token recorded an increase of nearly 195%, while recording a peak price of $2.39. BONE’s volumes look excellent, clearly increasing as the price rises. The RSI reveals a bearish divergence, which we note in the overbought area. It does not necessarily result in immediate declines, but may temporarily cool the market. MACD, on the other hand, remains clearly bullish.
The hype currently in place around BONE is definitely right to trigger a continuation of the uptrend, thus contradicting any bearish technical indications. In order to understand this behavior, it is worth reading about the relevance of BONE to the Shiba Inu ecosystem. We wrote more about it in an article titled: “BONE from Shiba Inu has crossed the $1.00 threshold – here’s what’s next”. We encourage you to read its contents.
The traditional market still remains decisive
There’s no denying that, given current macroeconomic events and Jerome Powell’s speech in Jackson Hole last week, it’s the traditional markets that determine cryptocurrency movements. As the above example shows, there are some exceptions to the rule. Nevertheless, further tightening of monetary policy, results in significant capital outflows, if only from the SPX index. If this one continues to come under selling pressure, Bitcoin is well within its rights to break the $20,000 barrier and head downward as well.
