Bitcoin August 4, 2022 – Red Bull and no wings

Bear realm – Bitcoin (BTC) price is losing a key level. The bulls are still lacking the strength to confirm a bullish rally that could allow the crypto king to reach new local highs in a month.

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Bitcoin Price Below Major Bullish Support

Today, August 4, 2022, the price of bitcoin has fallen to $22,390. The cryptocurrency closed the day at $22,480, with an estimated daily loss of 3.30%.

Trader Rekt Capital pointed to the fact that Bitcoin is “still trying to retest” the 200-week moving average as support.

Rekt Capital publication – Source: Twitter

The end of the week is approaching, and bulls need to at least hold the price of the cryptocurrency above this average in order to at least partially confirm the start of a relatively strong technical bullish rebound.

However, according to Rekt Capital, “Currently there is very little buying volume to support this new test.” Sellers lead the markets in volume “so far all week”.

Stocks outperform BTC price

While the weekly bull run above the 200-week moving average thus appears to be compromised, Cryptobirb trader has shared a chart that shows bitcoin falling below the trend line.

This breakout could portend “more spin-offs” for bitcoin price in the near future.

BTC USD breaks the trend lineCryptobirb post – Source: Twitter

As such, traders are highlighting signs of relative weakness in Bitcoin. According to trader Pedma, the cryptocurrency has even shown “relative weakness against the S&P500” in recent days.

The S&P 500 has been “producing green bars every day” while the price of bitcoin has been clinging to red candles this week.

S&P500 Price vs. BTC: In the short term, stocks perform better.Author: pedma – Source: Twitter
bitcoin priceAuthor: pedma – Source: Twitter

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

This bearish outlook contrasts with this analysis, which claims that the price of bitcoin is about to enter a pre-bullish phase. A weekly close below the 200-week moving average will confirm that the bulls are not yet ready to regain control, even in the short term, despite last week’s encouraging signs. Although today’s traders’ forecasts are rather pessimistic, the markets have three more days to change everything.

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