Bitcoin price retests key $22.8K as metric points to 'BTC buying spree'

cointelegraph.com:

Bitcoin (BTC) returned to base on Aug. 4 as higher levels gave way to a battle for the 200-week moving average (MA).

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD falling to repeatedly test the key bear market trendline as support.

The day’s Wall Street open provided only a brief change in the mood, with the pair spiking above $23,000 before continuing previous behavior.

The atmosphere was unchanged by news that investment giant BlackRock had partnered with major exchange Coinbase to provide crypto trading to clients.

Instead, the familiar status quo involving the 200-week MA just above $22,800 entered another chapter, with bulls and bears still tussling for control. On-chain analytics resource Material Indicators noted that one class of whales active on the largest global exchange, Binance, was in a more risk-off mood on the day.

“The purple class of whales have historically had the most influence over Bitcoin price action,” it wrote on Twitter alongside a chart of data from the Binance order book.

Support was thin near the spot price, the chart showed, with more substantial bid interest only at around $22,400 in the event of a breakdown. Resistance, meanwhile, was building at $23,400.

“Lots of chop here on lower time frames but with this local sweep of the highs we finally look ready to get that flush down into downside targets,” popular trader Credible Crypto meanwhile added in his latest forecast on Aug. 3.

On the topic of buyer interest, on-chain data additionally showed a marked increase in the portion of the overall BTC turning illiquid.

Related: ‘Insane evidence’ Bitcoin has capitulated in past 2 months — analysis

Originally created by William Clemente, lead insights analyst at Blockware and