Bitcoin (BTC) hit a new six-week high on July 31 as the event for the weekly and monthly close approached.
“Bart Simpson” welcomes traders to the BTC Monthly Close
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair reversing all of its early weekend gains, falling from $24,670 to $23,555 within hours.
The resulting chart structure was all too familiar to long-term market participants, creating a “Bart Simpson” shape on the hourly scales.
Liquidations remained manageable, however, and the total cryptocurrency amounted to $150 million in 24 hours, according to data from analysis resource Coinglass, less than in previous days.
For popular trader and analyst Rekt Capital, there was no reason to believe that the upcoming weekly close would confirm that bitcoin had reestablished a major trend as support after weeks of failure.
— Rekt Capital (@rektcapital) July 30, 2022
#BTC seems to have successfully retested the 200 week MA as support $BTC #Crypto #Bitcoin pic.twitter.com/yg75xrxXQB — Rekt Capital (@rektcapital) July 30, 2022.
Looking ahead, however, not everyone is convinced that the current market strength is still enough to maneuver.
In one of his weekend Twitter posts, Content Scientist, creator of Content Indicators, a chain analysis resource, noted that funding rates on derivatives platforms are becoming more positive, indicating a strong consensus that prices may rise unchecked.
“There has been a complete reset of negative funding, just as it was at the end of March. We may even see positive funding on some articles soon,” he said. writing :
“I think there is one last blow in the gray area before the bearish rally ends.”
However, the BTC/USD pair was still on course for monthly gains of around 19% in July, a stark contrast to every other month of the year so far.
According to data from Coinglass, July’s returns were even close to being the best for bitcoin since the 2021 highs.
One of the ‘Biggest Bull Markets’ Bitcoin could wait for right now
Another view dampened the prospect of another near-term correction.
Also Read: Historic Bitcoin Metric Breaks Out of Buy Zone in ‘Unprecedented’ 2022 Bear Market
When it comes to expected performance in the second half of 2022, Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, had little doubt where bitcoin is headed in particular.
A reference to the US Federal Reserve considering raising interest rates “meeting by meeting,” as Chairman Jerome Powell did this week, “could mark the pivot for #Bitcoin to resume its uptrend. declared on social media.
“July saw the sharpest discount in bitcoin history to the 100 and 200 week moving averages, with implications for its recovery,” he told Trendline.
“I see risk and reward stacking up in favor of one of the biggest bull markets in history.”
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