Bitcoin (BTC) returned to base on August 4 as higher levels gave way to a battle for the 200-week moving average (MA).
The battle for the classic Bitcoin price trendline rages on
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD falling to repeatedly test the key bear market trendline as support.
Wall Street’s open of the day brought only a brief change in mood, with the pair breaking above $23,000 before continuing its prior behavior.
The atmosphere was unaffected by the news that investment giant BlackRock had partnered with major exchange Coinbase to provide crypto exchanges to clients.
Instead, the familiar status quo involving the 200-week MA just above $22,800 has entered another chapter, with bulls and bears still vying for control. On-chain analysis resource Material Indicators noted that an active whale class on the world’s largest exchange, Binance, was in a riskier mood that day.
“The purple class of whales have historically had the most influence on Bitcoin price action,” he wrote on Twitter next to a graph of Binance’s order book data.
“Interesting to see them throwing themselves into other classes pumping.”
Support was thin near the spot price, according to the chart, with more substantial supply interest only at around $22,400 on a breakout. Resistance, meanwhile, stood at $23,400.
“A lot of chop here on shorter timeframes, but with this local high sweep, we finally look set to drop this flow to downside targets,” said popular trader Credible Crypto. added in its latest August 3 forecast.
“Looking for a higher low and reversal to continue higher to $25k+ BTC.”
Buying data hints at the next BTC supply shock
As for buyer interest, on-chain data also showed a marked increase in the share of global BTC becoming illiquid.
Related: ‘Insane Evidence’ Bitcoin Has Capitulated Over The Last 2 Months – Analysis
Originally created by William Clemente, Chief Analyst at Blockware and statistician Willy Woo, the Illiquid Supply Shock (ISS) ratio measure seen which popular Game of Trades commentator called a “massive peak” in July.
ISSR rises when BTC is mostly withdrawn from circulation, which in turn increases the likelihood of a price spike based on demand exceeding supply.
“HODLers have gone on a buying spree not seen since 2018,” Game of Trades commented that day, uploading SSR data hosted by on-chain analytics firm Glassnode.
Glassnode itself noted that mass hodlers are still selling more BTC at a loss than at a profit, but that demand is also likely to increase currently.
“This is typical of bear markets, and a reversal is often associated with a recovery in demand,” he added. commented on a graph showing the profits and losses made per day.
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