This month of August can be a good time to buy bitcoin. After months of decline, the price of this cryptocurrency is starting to show bullish signals. Indeed, the price of BTC was only able to go down 2.93% during the first week of August. On top of that, this low descent has almost was engulfed on Friday 05, following the publication of the NFP. This shows that sellers are starting to lose strength. Let’s perform an analysis of the price of Bitcoin, today August 08, 2022.
Bitcoin (BTC): a resistance zone to break before buying
On a weekly chart, we can see a support zone that has become resistance, on bitcoin. This zone is between $28,000 and $30,000. For a less risky investment, you can wait for the breakout of this zone before buying your bitcoins. However, your patience will be tested.
For the impatient, another option is available to you: it is to invest now. However, if you buy your bitcoins (BTC) today, consider selling or lightening your position around $28,000. Indeed, let us recall the fact that the price movement goes from one zone to another thanks to the pressure of sellers and buyers. There may then be a lot of sell orders placed on this resistance zone. Or, take profit orders for investors who bought bitcoin at market lows. This is why this area around $28,000 will be the best take profit if you buy now.
Bitcoin (BTC): ready to break above the 200 moving average
After two successive green candles, it looks like Bitcoin is now poised to break far above the 200 weekly moving average. Indeed, bitcoin has already gained 4.16% since the opening of the August 08 session. On the chart, this is represented by a long green candle, signifying a strong bullish impulse. On top of that, there is not enough volume to push the price down. So, you can take advantage of this and buy bitcoin now. By the way, we can expect the price of this crypto to stay in this slight uptrend for the coming weeks.
Based on this technical analysis, you can buy bitcoin for this month of August. You have a choice between investing now and investing when the price breaks the resistance zone. In any case, it will be around $28,000 and $30,000 that everything will play out.
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