August 12, 2022

The cryptocurrency market is already showing signs of uncertainty in the middle of the first half of the week.

Bitcoin has already recovered a slight bounce in line with the current price channel, but this pullback has significantly lower volumes and a lower range.

Bitcoin’s current performance is consistent with the uncertainty of whether it will continue to rise or pivot.

Some analysts expect the market to continue looking for more downside as the Federal Reserve ramps up quantitative easing.

This outcome is expected to continue to put more pressure on risky assets such as Bitcoin,

On the other hand, BTC saw a huge rally after the outcome of the last FOMC meeting.

These contradictory scenarios culminated in the prevailing unpredictability. Bitcoin price of $22,863 on August 4th was in the middle of the current support and resistance range.

source; TradingView

The BTC MFI indicator has settled near the 50% level and the RSI indicator is showing a similar result.

This is a reflection of the decline in outflows and a closer look at the Bitcoin chain metrics may help to understand the market.

ready to ship

The whales have been adding to their balances during bearish corrections, supporting their current range.

Addresses with more than 100 BTC bounced back from a monthly low of 15,819 on July 28 to 15,856 by June 3.

Source: Glassnode

The Bitcoin dormancy meter also reveals that most of the Bitcoin accumulated especially at the end of July has not moved.

The dormancy scale is currently approaching its lowest level in four weeks. This is a sign that most bitcoin owners are bullish on a possible upward trend.

Accumulation near the current price level is confirmed by the drop in BTC gains made in the first week of August.

It made strong gains near mid-July as investors cashed in after the previous rally. This wave of demand did not lag behind the futures market.

The gauge of futures open interest has recorded a significant increase in the past four weeks.

Source: Glassnode

These observations illustrate the rise in the price of Bitcoin. BTC accumulation is a healthy sign that bulls may prefer.

However, the market is still waiting for the uncertainty to clear, which means that there is still a high probability of a bearish outcome.

Bitcoin is likely to retest the current ascending support line this weekend.

However, its ability to bounce will depend on whether the market will depend on the prevailing sentiment. A pattern break may be around the corner.

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