Bitcoin (BTC) has been consolidating around $23,000 since August 1. Also last weekend, bitcoin hovered between $22,900 and $23,200. When the price starts to move in such a tight range, a breakout seems inevitable. Bitcoin breaks out of this symmetrical pattern this morning.
interesting monday #Bitcoin decided to go UP!
juice.#BTCUSD pic.twitter.com/jElSiEJl3W
— Duo Nine | YCC (@DU09BTC) August 8, 2022
Bitcoin price rises by 3.3%
The bitcoin price has been steadily rising since Sunday from $22,900 to $23,400 this morning. Then the gains kicked into gear and bitcoin rocketed to $23,750 in two hours.
At the time of writing, the BTC price stands at $23,820 on Binance and $23,340 on Bitvavo. This means that the BTC rate is up 3.3% today.
Bitcoin once again closed the week above the 200-week moving average, which is now around $22,965. Meanwhile, price makes a so-called inverse head & shoulders cartridge. Those are both bullish Short Term Signals, But Can Bitcoin Break $24,000 This Time?
#Bitcoin 4 Hour Inverse Head & Shoulders Reversal Bottom Forming: pic.twitter.com/SuwIZap6K0
— Matthew Hyland (@MatthewHyland_) August 8, 2022
Bitcoin Bear Market Rally and CPI
It is speculated whether the current rise is in anticipation of the next US consumer price index (CPI). The next US inflation data will be released next Wednesday, August 10.
Financial markets are hoping that the US CPI has “spiked”, which stood at 9.1% last month, the highest since 1981. Should the numbers diverge sharply this week, markets could react violently again. Should inflation turn out higher than expected, we may see markets panic again and prices fall. Should the CPI come in lower, we might see this bear market rally further invigorate.
That is what the market calls the current rise: a bear market rally. This can also be seen in Google Trends data, reports Alex Krüger. Incidentally, there will be no meeting of the Federal Open Market Committee (FOMC) this month. That won’t happen again until September.
Lo and behold, the 2022 Bear Market Rally!
Historically people googles for “Bear Market Rally” right after the market bottoms (granted, the sample size is just two).
h/t @zentrader1254 pic.twitter.com/2v0O82M88h
— Alex Kruger (@krugermacro) August 7, 2022
Bitcoin bottom signal
However, the market remains very divided whether the bitcoin price has reached a bottom or not. The share of BTC offerings in profit fell below 50% during each bear market, and during the March 2020 coronavirus crash.
On June 18, 2022, this share stood at 50.28%. Analyst On-Chain College wonders if this was the bottom or if more capitulation will follow.
The percent of the #Bitcoin supply in profit fell below 50% during each bear market bottom & March 2020.
On June 18th, 2022, it bottomed at 50.28%.
2 scenarios:
1) That was the bottom and this time is different
2) Further capitulation is still on the horizonWhat do you think? pic.twitter.com/09L5a3icj7
— OnChain College (@OnChainCollege) August 7, 2022
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The cost to mine one bitcoin around the world. Huge arbitration left. pic.twitter.com/jGIpr5RXfY
— ⚡⚠️☢☣Alessandro Tosin☣☢⚠️⚡ (@Alessan72994896) August 7, 2022
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