Bitcoin Price Rises to $24,000 as ‘Classic Short-Selling Setup’ Puts Bulls in Play

Bitcoin Price Rises to $24,000 as 'Classic Short-Selling Setup' Puts Bulls in Play

Bitcoin (BTC) saw additional volatility after Wall Street’s final July open, with highs north of $24,000 still solid resistance.

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

BTC hits resistance at $24,000

Data from Cointelegraph Markets Pro and TradingView showed that the bulls continued to struggle as the BTC/USD pair hovered around the $24,000 mark on July 29.

The pair tried to match the week’s local high of $24,450 but failed as the resurgent US Dollar pressured the cryptocurrency despite gains in US equities.

The US dollar index (DXY) continued higher during Wall Street trading, peaking at 106 after falling to its lowest levels since July 5.

1 hour candlestick chart of the US Dollar Index (DXY). Source: Trade View

Record eurozone inflation added to the day’s macro trigger, while the monthly close remained a guessing game for bitcoin analysts.

On the short time frames, popular Crypto trader Tony was interested in what he called a “classic short setup” around the top, which remained Bitcoin’s best since mid-June.

$BTC / $USD – Update A classic short sale setup with a clear point of invalidity … anyone caught? — Cryptocurrency Tony (@CryptoTony__) July 29, 2022.

However, other key levels were still suitable to act as support in the event of a further decline. These include bitcoin’s 200-week moving average at around $22,800 and the realized price at $21,820.

#bitcoin back above realized price, light blue, I like it — PlanB (@100trillionUSD) July 29, 2022.

For the first case, however, a weekly bitcoin candle should be closed to confirm a resistance/support reversal, which Note Rekt Capital trader and analyst for the day.

The weekly close would also double as a monthly close, making July 31 an important psychological day after a 40% fall in June – bitcoin’s worst monthly performance since September 2011, according to figures from the data resource on Coinglass chain.

Chart of monthly bitcoin returns (screenshot). Source: Coinglass

180 days to “full recovery”?

Summing up 2022 for cryptocurrency markets, a new report from chain analysis firm Glassnode and market site CoinMarketCap suggested that the road to recovery could be long.

Also Read: Bitcoin Bear Market Is Over, Metrics Say, As BTC Exchange Balances Hit 4-Year Low

After the chaos, which began with the disaster of Terra (LUNA) – now renamed Terra Classic (LUC) – in May, a “reset” occurred across cryptocurrencies, according to the report.

With bitcoin and ether (ETH) alone having lost 75% from their all-time highs in less than a year, it may take until 2023 for the trend to change permanently.

“The market has only been in this position since mid-June, and previous bear cycles have taken an average of 180 days before a full-scale recovery takes effect,” he read.

Glassnode and CoinMarketCap, in particular, highlighted the plight of miners who, as reported by Cointelegraph, were facing persistent profit margins during the second quarter and recently. The report concludes:

“Overall, 2022 has so far been a significant challenge in terms of market expectations, extensive deleveraging and, ideally, the start of a new set of foundations, on which even higher structures can be built”.

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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