What Is Happening to Bitcoin?

It’s boring to say the same thing but all metrics still are at the mercy of Inflation and BTC bottom is yet to be reached. Any bullish proposition is a castle in the air for the BTCUSD or any other Crypto for that matter. 

The reason is lesser investor interest in risky assets and lower demand for investments as a whole as people want more liquidity to escape through inflation. recent research by Pew Research Center reveals that 46% of adult crypto users are not happy with RoI in Bitcoin and other crypto products.

Besides, USD is getting stronger on rate hike claims and hawkish Statements and the upcoming Jackson Hole Conference where the USD will be in limelight.

The pumping from 22630 on August 5 was short-lived as profit takers and hodlers liquidated and selling pressure from bears came in strong and wiped off all the gains of 8 days. It has now fallen to December 2020 levels where it was in the full-fledged bull run. Now bitcoin stays at the lower edge of the consolidation swings which appears like a bearish flag in the long term.

A strong breakdown from the 21400 range can send the top crypto spiraling down. However, in the last three days, the candles are bullish as there has been buying pressure from the lows and almost hammers and similar candles are being formed.

Long-term Moving averages still show the bearish trend to continue. Money Flow is also outgoing and is reaching the oversold zone. Volumes are also low meaning this consolidation may be short-lived.

What shall we do?

Well, look for shorting opportunities as we might see another bear move as the crypto breaks 20800 levels. Scalpers are safe to bet on the red side and intraday traders can keep short positions intact. Long term, there is a high probability that BTC is going to see another bear run. Lower supports may be 19900, 18600, and 16700. But if it doesn’t break the higher lows, we can see some consolidation and even short-term recovery till September.