A major trend that bitcoin price crossed for the first time in more than a month is now its first test of support.
Resistance becomes support
Bitcoin worked his first test of his new support on July 21t, at the same time the market on notice learned the news that Tesla had liquidated most of its bitcoin holdings.
Data from Cointelegraph Markets Pro and TradingView showed that the pair BTC/USD was fighting on the $22,800 zone after falling from a multi-week high at $24,280.
The pair reacted quickly, but modestly, to Tesla’s revelation that its bitcoin position was down 75%, ie almost 936 million dollars, in the second trimester. Comments from CEO Elon Musk, who avoided direct criticism of the largest cryptocurrency, appeared to help limit the damage. During the company’s earnings conference call, he indicated that this sale “it should not be taken as a verdict on Bitcoin.”
However, several days of sustained research ended the move, with BTC/USD rising alongside the traditional equity market as the strength of the US dollar fell from 20-year highs. The 200 week moving average is $22,800 for BTC, a significant historical trend that was lost as support in June and only crossed higher in the last few days.
Interesting times here for $ btcreversal resistance and the 200 wma (blue line)
— 𝐂𝐫𝐲𝐩𝐭𝐨 𝐖𝐚𝐥𝐭𝐡 (@AskCryptoWealth) July 21, 2022
Be careful with Bitcoin
For indicators on a chain, immediate prospects are mixed. Although the daily UTs showed weakness, the data still shows a broad rally continuing on the monthly chart.
“This could mean a retest of the 50-day moving average in the near future, but also that we may not have seen the monthly top. Ignore the noise and look at the graphics,” according to this Twitter watcher.
The 50 day moving average was almost the same as the 200 week moving average today. Meanwhile other analysts showed how Tesla dumped its BTC in mid-June.
Last month, over a period of several days, the stock markets experienced peak inflows, more than 63,000 BTC have been issued by market makers (MM).
MMs at Coinbase sent 63,638 $BTC with multiple exchanges, mostly Binance and Bitfinex, in the last 72 hours. All high time in daily flow on June 12.
They are doing the bidding of someone(s).
Live Chart 👇 https://t.co/WqbggqIoSD pic.twitter.com/r2gbnZ6yGG
— Ki Young Ju (@ki_young_ju) June 15, 2022
According to data from analytics firm Glassnode, news of the sale which has not yet been shown in significant upheaval exchange scales at panicked sellers or opportunistic buyers.
We will watch carefully in the coming days to see if Bitcoin will succeed keep this new key support and that to maintain an uptrend in the short to medium term.