Bitcoin price hits $23,400 on 4.6% gains amid 'very mixed' outlook

A push up the intraday trading range puts Bitcoin in line for a bull flag on the daily timeframes.

Market Update

Bitcoin (BTC) rallied overnight on August 5 as a new trendline opened the door for further gains.

BTC/USD 1-Hour Candle Chart ( Bitstamp). Source: TradingView

Daily BTC price chart establishes "provisional" long signal

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD bouncing off a local low at $22,400 to add around 4.6%.

The pair had reversed its direction just at key supply support on major Binance exchange, which staved off a larger loss of the 200-week moving average (MA) at around $22,800 .

While this key area remained uncertain for bulls, a recovery in the 21-period MA on the daily chart gave on-chain analysis resource Material Indicators reason for optimism.

BTC/USD might not trigger a long signal at the daily close of the candle, he told Twitter followers overnight.

Help if I post the graph with. It was worth the wait. #BTC recovered 21-DMA and Trend Precognition A2+ aglo started flashing a new signal. It's provisional until the closing of the D. pic.twitter.com/gpTSxrikeT

— Materials Indicators (@MI_Algos) August 5, 2022

Trader and analyst Rekt Capital nonetheless expressed continued caution over Bitcoin's poor track record to turn the 200-week MA into strong support for this bear market.

“Historically, BTC has been able to generate huge buy-side interest in the 200-week MA,” he said.