Bitcoin on August 4, 2022 – Red-bull, and without the wings

The Reign of the Bears – The price of Bitcoin (BTC) loses a key level. The bulls still seem to lack the strength to confirm a bullish rally, which could allow the king of cryptocurrencies to reach new local highs for the month.

This Bitcoin price analysis is brought to you in collaboration with the Coin Trading and its algorithmic trading solution finally accessible to individuals.

Bitcoin price below major bullish support

The price of bitcoin drops to $22,390 today, August 4, 2022. The cryptocurrency closed the day at around $22,480, with an approximate daily loss of 3.30%.

Trader Rekt Capital pointed out that Bitcoin “ always try to retest » the 200-week moving average as support.

Publication of Rekt Capital – Source: Twitter

The weekly close is approaching, and the bulls need to at least keep the cryptocurrency price above this average, for even partial confirmation of the start of a relatively strong bullish technical bounce.

Nevertheless, “there is very little buying volume to support this new test at this time,” according to Rekt Capital. Sellers dominate the markets in terms of volume for the “all week so far”.

Stocks outperform BTC price

While the weekly bull run above the 200-week moving average therefore seems compromised, trader Cryptobirb shared a chart that shows Bitcoin falling below a trendline.

This rupture could presage “ more lateral implications for the price of Bitcoin in the short term.

BTC USD breaks a trendline
Publication of Cryptobirb – Source: Twitter

Traders are thus highlighting signs of relative weakness in Bitcoin. The cryptocurrency has even shown “relative weakness against the S&P500” in recent days, according to trader Pedma.

The S&P500 “produced green bars every day”, while the price of Bitcoin has chained red candlesticks this week.

S&P500 to BTC price: stocks outperform in the very short term.
Publication by pedma – Source: Twitter
Bitcoin price
Publication by pedma – Source: Twitter

This relative weakness of the cryptocurrency is obviously not “a very good sign if we expect any type of significant recovery. »

This bearish outlook contrasts with this analysis which argues that Bitcoin price is about to enter a pre-bull phase. A weekly close below the 200 week moving average would confirm that the bulls are not yet ready to regain control, even in the short term, despite the encouraging signs of the past week. Although the outlook issued by traders today is quite pessimistic, the markets still have three days to turn things around.

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