Analysis of the situation in the cryptocurrency market from August 22 to August 27, 2022

Bitcoin has been in uncertainty for the past few days. What will happen next? KickEX analysts consider either $21,800 as a positive target for movement, or, in the event of a breakdown and consolidation below the $20,800 level, a continuation of the movement to levels below $19,000.

“The Hash Ribbons (HR) indicator is a unique on-chain analysis tool based on specific metrics of the intersection of the 30- and 60-day moving averages (SMA) of the Bitcoin hashrate. The intersection of the 30-day SMA from bottom to top of the 60-day SMA means the end of the period of “miner capitulation.” Or in other words, the Bitcoin hashrate begins its recovery.”

Statistically, the “blue dot” (buy signal) works perfectly in the long term and on average you can make a huge profit (a table with historical data is provided below).

In the long term, you need to consider the following decline as short-term sales and an opportunity to build your portfolio. 

If we switch to a lower timeframe, we can notice several touches of the level of 21800, which tells us about the weakness of buyers.

In the event of a breakdown and consolidation below the level of 20800, it is advisable to consider continuing the movement to levels below 19000. It is also worth noting that after the breakdown of the lower border of the triangle dated July 13, 2022, the complete development of the formation will be near the levels of 19900 (0.786) and 18900 (1.00), which once again confirms the “bearish” scenario.

It is also worth considering a positive scenario (unlikely) - a return to the “flat” 20800 - 21800 with further continuation of position accumulation.

Subscribe to ForkNews in Telegram to keep abreast of news from the world of cryptocurrencies