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Bitcoin may still see 'wild' weekend as BTC price avoids key $22K zone

The Cointelegraph ​

Cryptocoins News / The Cointelegraph ​ 161 Views

Bitcoin bulls still have a battle on their hands in low-volume weekend trading, analysis warns, while altcoins preserve multi-week record gains.

Bitcoin (BTC) focused on $21,000 into the weekend amid warnings that volatility could still consume the market before Monday.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

S&P 500 sees second best week of 2022

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD broadly higher in its recent trading range after U.S. stocks ended the week strong.

As noted by markets commentators Holger Zschaepitz, the S&P 500 sealed its second best week of 2022, indicative of modest relief across risk assets.

Bitcoin was on track to log slights gains at its weekly close, the first weekly green candle — albeit small — since May.

Before then, however, anything could happens, according to on-chain analytics resource Material Indicators (MI).

Referencing recent weekend price action, MI recommended Twitter followers not to be complacent in the absence of weekday volume.

"If BTC can take out the 200 WMA there is room to run," part of one post read.

"Wknds have been wild so buckle up. A retest of the lows can come as fast as a rip to $24k."

An attached chart of order book data from largest global exchange Binance offered a glimpse into buy and sell plans from traders. Below spot price, there was little support in terms of volume until $19,000, while conversely, heavy resistance lay just north of $22,000. 

Binance BTC/USD order book data chart. Source: Material Indicators/ Twitter

That level marked the key 200-week moving average (WMA) for BTC/USD, this being necessary for bears to reclaim to change the trend, various sources believe.

Altcoins set for first green week since March

Altcoins were also calm on the day while eyeing an impressive week of gains within the gloomy overall macro market context.

Related: Ethereum price breaks out as 'bad news is good news' for stocks

In the top ten cryptocurrencies by market cap, several tokens stood around 30% higher than seven days previously at the time of writing.

Among them was Ether (ETH), up 28% and lingering around $1,200.

In a dedicated order book post, MI noted that ETH/USD had also performed a retest of the 200WMA, but that trouble could still lie ahead.

Elsewhere, Shiba Inu (SHIB) was up 50% versus last week, while Polygon (MATIC) stole the show with 70% weekly gains.

MATIC/USD 1-day candle chart (Binance). Source: TradingView

For Cointelegraph contributor Michaël van de Poppe, there was still every reason to enter crypto markets now.

"From an investment thesis (all things ceteris paribus), it's a great period to look for those altcoins that you want to have," he told Twitter followers.

"In 2021, everyone dreamed of buying those at those low price values. Now the chances are there and people don't dare to make the decision. Typical."

On the weekly basis, the altcoin market cap was up $37 billion over the week, set for its first green candle since March.

Altcoin market cap 1-week candle chart. Source: TradingView

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.


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