Bitcoin Bulls Cost $23,000, Warn Bear Market is in Good Shape

Bitcoin Bulls Cost $23,000, Warn Bear Market is in Good Shape

Bitcoin (BTC) tested the $23,000 support at the August 1st Wall Street open, and the mainstream media was in attendance.

1-hour candlestick chart of the BTC/USD pair (Bitstamp). Source: Trade View

The 200-week moving average catches the eye

Data from Cointelegraph Markets Pro and TradingView tracked the course of the BTC/USD pair as bulls and bears tried to control a tight trading range.

The day before, bitcoin had posted its highest weekly close since mid-June, and its monthly candle also marked the biggest gains since last year’s $69,000.

However, for analysts and traders, it was the market’s ability to stay higher for several more candles that mattered.

Despite retrieving important trends such as the 200-week moving average (MA) and the realized price, bitcoin would not be out of the woods until it started producing all weekly candles without a retest of these levels.

“The bear market rally is still very much alive,” it said Explain Content Indicators, chain analysis resource, that day.

“To call it anything else, you need separate valid declarations above a key moving average. The 200 weeks and 50 months are the first to consider for BTC, unless we have full candles above the line. A wicket below invalid [l’hypothèse d’une rupture].”

BTC/USD (Bitstamp) 1 month candle chart with 50 month MA. Source: Trade View

Thus, $22,880 and $21,965 were necessary lines to hold for the bulls and closer and closer to the spot price.

However, another trader and analyst, Rekt Capital, predicted that bitcoin would naturally try to repeat the 200-week moving average as short-term support.

#BTC’s new weekly close above the 200 week moving average will attempt to retest this moving average as new support this week. Last week, BTC already had its moving average as support, as evidenced by the bearish wick. He will now try to hold it for the second week in a row$BTC #Crypto #Bitcoin — Rekt Capital (@rektcapital) August 1, 2022.

Commenting on the strength of the price, however, yes Note that the 200-week MA recovery was the first such occurrence after an “extended downturn” since the COVID-19 crash in March 2020.

“Bitcoin may struggle to clear the $24,000 level, but its weekly candle finally closed above the 200-week moving average and that could significantly improve technical sentiment,” he said. abstract Zain Haider, co-founder of Q&A platform Blockchain Answerly, in the additional comment.

Activity on a chain is “different at best”

With US equity markets flat for the day, bitcoin and altcoins were largely unaffected by macro pressure.

Also read: The best monthly gains since October 2021 – 5 things to know about bitcoin this week

Still, the picture remains somewhat uncertain, researchers at chain analytics firm Glassnode warned, with markets still reflecting the bearish mood after months of a bearish trend.

“Both bitcoin and Ether saw a price rebound this week, driven by oversold conditions, and boosted by risk-on sentiment following the July FOMC meeting,” they concluded in the latest issue of Glassnode’s weekly newsletter, The Week On Chain.

“However, below the surface, transactional demand on chain remains lackluster at best, and a determined follow-through remains to be seen from this recovery in observable demand activity. »

Glassnode said that on-chain data is still “only part of the picture,” and that attention should now be focused on whether the early signs of change will last.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of All investment and business transactions involve risk. You should do your own research before making a decision.

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