As bulls lose $24,000 in value, Bitcoin realised price bands form crucial resistance

Significant whale action between $22,000 and $24,800 complicates the existing spot market configuration.

Bitcoin (BTC) consolidated lower on August 9 following the maintenance of a multi-month trading range by familiar resistance.

24fb1f76 97fd 4c38 b363 685f27949f35

Bitcoin scales the price ladder of whales

Overnight, according to TradingView data, BTC/USD fell below $24,000 after rejecting near $24,200.

As the upper boundary of the trading range in place since mid-June drew closer, the pair’s impetus began to wane.

As a result, bulls were unable to recapture new territory or even approach the highs set at the end of July, and the status quo persisted. At the time of writing, the BTC/USD exchange rate was consolidating around $23,800.

For the on-chain analytics resource Whalemap, realised price was now forming significant resistance levels.

In an August 8 Twitter post, Whalemap, a service that tracks the buys and sales of high-volume players to construct potentially solid support and resistance zones, showed the various prices at which the BTC supply had most recently moved.

A supplementary graphic broke down realised price by wallet size and indicated the price at which BTC belonging to specific whales last left their wallet.

“Realized price bands are the primary factor providing Bitcoin with resistance at the moment,” the Whalemap team noted in accompanying commentary.

“Confidently surpassing $24,825 and consolidating should be the key to further gains”

9cbd6cde b8fe 4bfc a020 597d43b41f51

Other levels of support and resistance in action this week include the 100-day and 200-week moving averages, as reported (MAs).

Credible Crypto, a prominent trader, anticipates a deeper decline, which might reach $23,360 without disturbing the low-timeframe trend.

“Looking for that flip into support for one more macro push up to send it,” Crypto Tony, a fellow trader, added in a more bullish assessment of the range high.

 

Wednesday’s inflation data did not affect the markets.

In the meantime, potential volatility remained on the radar, with imminent U.S. inflation data due on August 10 topping traders’ list of market triggers to monitor.

On the opening trading day of the week, however, U.S. markets exhibited little worry, with the S&P 500 finishing flat and the Nasdaq Composite Index gaining 0.4%.

In a recent macroeconomic analysis, the popular Twitter account BTCfuel urged caution. Losses in China, it cautioned, might precede a U.S. copycat move, which would impose extra pressure on crypto markets that are heavily correlated.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

Leave a Comment

Your email address will not be published.

Facebook
Twitter
Telegram

Recent Posts

Follow Us