Bitcoin bulls still have a battle on their hands in low-volume trading weekend, analysis warns, as altcoins retain multi-week record gains.
Bitcoin (BTC) focused on $21,000 over the weekend amid warnings that volatility could continue to consume the market ahead of Monday.
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair rallied broadly in its recent trading range after US stocks finished the week strong.
As market commentator Holger Zschaepitz noted, the S&P 500 sealed its second-best week of 2022, signaling modest easing in risk assets.
On Twitter Zschäpitz stated that, “in case you missed it: S&P 500 has gained >6% in 2nd-best week of 2022 as disinflationary forces gather steam & #Fed tightening expectations recede. Investors now see the key interest rate at only 3.4% at the end of 2022, a full 35bps lower than at the start of the week.”
The S&P 500 Records the Second Best Week of 2022
Bitcoin was on track to post slight gains on its weekly close, the first weekly green candle — albeit a small one — since May.
Before then, however, anything could happen, according to on-chain analysis resource Material Indicators (MI).
Referencing the recent weekend price action, MI advised Twitter followers not to be complacent in the absence of midweek volume.
“If BTC is able to break above the 200 WMA, there is room to run,” part of one message read.
“Weekends have been wild so buckle up. A retest of the lows can come as quickly as a breakout to $24,000.”
An accompanying chart of order book data from Binance, the largest global exchange, offered a glimpse into traders’ buying and selling plans. Below the spot price, there was little support on a volume basis up to $19,000, while conversely, strong resistance was found just north of $22,000.
That level marked the key 200-week moving average (WMA) for the BTC/USD pair, needing to be claimed by bears to change the trend, multiple sources believe.
Altcoins Prepare for their First Green Week since March
Altcoins were also quiet on the day as they set for an impressive week of gains against the gloomy macro market backdrop.
Among the top ten cryptocurrencies by market capitalization, several tokens were up around 30% from the previous seven days. Among them was Ether (ETH), which was up 28%.
On a Twit, MI noted that the ETH/USD pair had also retested the 200-day WMA, but problems could still arise. “ETH with a legit retest of the 200 WMA on volume of the latest Trend Precognition signal. Want to see next week’s candle w/ a clean open and close above it without another sweep of the lows to validate. Concerned the 21 WMA will cross the 100 WMA and trigger another dump.”
For Cointelegraph contributor Michaël van de Poppe, there are still reasons to enter the cryptocurrency markets now. As he told his followers on Twitter, “From an investment point of view (all things ceteris paribus), it’s a great time to look at the altcoins you want to own.”
“In 2021, everyone dreamed of buying them at such low prices. Now the possibilities are there and people are hesitant to make the decision. Typical,” he added.
On a weekly basis, the altcoin market capitalization rose $37 billion for the week, set for its first green candle since March.
By Audy Castaneda
