A Look at Bitcoin Heading into the Weekend: What’s Next for the Apex Cryptocurrency?

by James · August 12, 2022

Bitcoin BTC/USD traded largely flat during Friday’s trading session. The crypto has been unusually quiet during the month of August, trading mostly sideways between around $22,700 and $24,300.

The long-term consolidation within the horizontal pattern has helped Bitcoin cool its Relative Strength Index (RSI), which hit around 61% on July 28, after the crypto shot up over 12% between that day and the previous day.

Despite the low volatility, Bitcoin is trading in a clear and consistent uptrend on the daily chart. Dogecoin DOGE/USD and Ethereum ETH/USD, although Ethereum has been the strongest crypto of the three. So far this month, Bitcoin has only risen 3.65%, Dogecoin has risen approx. 4.8% while Ethereum has risen more than 14% higher since opening on August 1st.

The lack of movement in Bitcoin and Dogecoin is due to a lack of trading volume, indicating a lack of interest even if the bulls are in control. Ethereum, on the other hand, has surged in popularity as the crypto nears its planned merger date, which was pushed forward to September 15.

Ethereum Classic ETC/USD seems to be the crypto that benefits the most from interest in Ethereum. The crypto rose over 20% between Wednesday and Friday.

If Bitcoin can gain bullish momentum over the weekend, Ethereum and other cryptos could follow suit.

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The Bitcoin Chart: Bitcoin’s last confirmed higher low within its uptrend was formed on August 10 at $22,669, and the last higher high was printed at $24,929 during Thursday’s 24-hour trading session. On Friday, Bitcoin dropped lower to test support at the eight-day exponential moving average and bounced off the level, perhaps printing the next higher low.

The eight-day EMA has served as solid support since July 27, slowly leading the crypto higher. Traders interested in taking profits may choose to do so if Bitcoin closes a trading day below the eight-day EMA or forms a lower low on the daily chart, which would negate the uptrend.

Bearish traders want to see a lot of bearish volume come in and force Bitcoin to close below the eight-day EMA, which could give bearish traders the strength to drop the crypto below the horizontal trend line of around $22,400. If Bitcoin were to falling below the 21-day EMA, the eight-day EMA would eventually cross below the eight-day EMA, which would give bearish traders more confidence going forward.