Bitcoin up 4.6%, within “very mixed” price forecast

05 Aug 2022

Bitcoin rallied overnight into Friday, up around 4.6%, as it reverted to a new trendline.

BTC/USD had changed course at key bid support to sidestep a more significant loss of the 200-week moving average at around $22,800, according to data from Cointelegraph Markets Pro and TradingView.

However, crypto analyst Rekt Capital remained cautious over the world’s largest cryptocurrency’s poor record at reversing the 200-week moving average (MA) into strong support during the bear market.
“Historically, BTC has been able to generate tremendous buy-side interest at the 200-week MA,” he stated.
“But if $BTC fails to retest the MA in the short-term, that would probably serve as further evidence that this recovery is merely one of relief.”

In a similar vein, Bitcoin’s price forecast remains “very mixed” according to the most recent market update from QCP Capital traders. 

They stated the U.S. Federal Reserve’s monetary policy stance would be a key factor in the future, adding that Fed Chair Jerome Powell had not reached consensus in regard to the pace of future rate hikes.
“Economic data globally is pointing to poor growth and a coming global recession,” stated the market update, underscoring upcoming Consumer Price Index (CPI) inflation data for July to be published next week. “We continue to think that markets will trade sideways and will be sensitive to economic data releases. U.S. CPI next Wednesday will be the next important one to watch.”
Moreover, in terms of altcoins, Ether joined Bitcoin’s upward trajectory. At the time of writing, ETH/USD stood at the $1,665 mark, yet ETH/BTC didn’t manage to crack resistance nearer 0.075 following a second retest, Cointelegraph reports.
With the Ethereum merge taking place in a month, worries were mounting over a potential hark fork of the network.
“The more pressing and immediate risk in the crypto markets is the ETH merge that is scheduled to take place in September,” QCP stated, adding that markets had already “started to price in the possibility of a material hard fork.”