The mood across the cryptocurrency ecosystem is noticeably brighter on July 22 after a week of gains that helped traders put the events of the past two months behind them and look to a positive future.
Data from Cointelegraph Markets Pro and TradingView show that the price of bitcoin (BTC) has been hovering around the $23,000 support for the past two days and continues to hold just above its 200-week moving average (MA), which has been a reliable reliable. indicator of past bear market lows.
As the debate over market direction continues to heat up, here are the key levels to watch ahead of the weekend, analysts say.
Bitcoin needs a weekly close above $22,800
Independent market analyst Michaël van de Poppe noted the importance of bitcoin trading above its 200-week moving average, which published the following chart highlighting the main areas of support and resistance:
According to van de Poppe, bitcoin is “once again facing critical resistance” at $23,500, and what happens next will determine whether its price will go higher or retreat to support at $21,500. He explained:
“If it breaks at $23,800 I guess we will continue and then $28,000 is on the tables, but we also have a clear break above the 200-week moving average that has been confirmed.”
Market analyst Rekt Capital addressed the importance of holding BTC above the 200-week moving average, which indicated the need for bitcoin to see a weekly close above 22,800. $:
#BTC the 200 week MA is seen around the week
The most important thing is the confirmation relative to the 200 week MA in the form of a Weekly Candle Close
— Rekt Capital (@rektcapital) July 22, 2022
#BTC is hovering around the 200 week MA during the week. The key is confirmation against the 200-week MA in the form of a weekly closing candle. The 200 week moving average is the price point of $22800$BTC #Crypto #Bitcoin — Rekt Capital (@rektcapital) July 22, 2022.
A big change in perspective
The recent price action is a sign that “a big move for #BTC is coming soon,” according to cryptocurrency trader and pseudonymous Twitter user CryptoGodJohn, whose available the following graphic shows two possible paths bitcoin could take:
“We break even and keep $24,200. I think we are getting closer to $27,000-28,000 pretty quickly. If we start to accept the range back, I’m looking for a rise down to $20,000. Pretty easy invalidation on both, be careful.”
Also read: Professional Bitcoin Traders Are Not Comfortable With Bullish Positions
Mayne, a Twitter user, also noted that movement could go in either direction published the following chart discusses the “possible range area” for bitcoin.
They further explained, “The upside could be juicy if we manage to hold above $22.5k/high range. It was probably a diversion to lose the top of the range. The move above the high of the range will be your risk as you are targeting shorts back into the range.”
For the sake of simplicity
For those who are more inclined to deposit and deposit rather than focus on daily bitcoin price movements, market analyst Caleb Franzen offered the following insight on when it would be good to average costs in dollars:
#Bitcoin analysis with monthly candles & the 12-month Williams %R Oscillator.
When W%R is “oversold” on a one-year basis, it signals an accumulation zone. When it crosses above the oversold threshold, the bull market stamps.
We have been in the accumulation zone since May 22. pic.twitter.com/kBrk23PA9F
— Caleb Franzen (@CalebFranzen) July 22, 2022
Analysis of #Bitcoin with monthly candles and the 12-month Williams %R oscillator. When the W%R becomes “oversold” on a yearly basis, it signals an accumulation zone. When it crosses the oversold threshold, the market turns bull. We have been in the accumulation zone since May 22. pic.twitter.com/kBrk23PA9F — Caleb Franzen (@CalebFranzen) July 22, 2022
The total market capitalization of the currencies is now $1.048 trillion and the dominance rate of bitcoin is 42%.
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