Bitcoin (BTC) lost volatility in the last weekend of July as the monthly close approached.
The 200-week moving average is in sight for the July close
Data from Cointelegraph Markets Pro and TradingView show that the BTC/USD pair has resistance at $24,000 until July 30.
The pair benefited from macro gains in risk assets during the second half of the week, including a strong end to the day for US equities. The S&P 500 and the Nasdaq composite index gained 4.1% and 4.6% respectively during the week.
Analysts warned, however, that anything could happen between now and July 31, as after-hours trading is likely to create volatile conditions at weekly and monthly closes thanks to reduced liquidity.
“We will sit back and watch the market until the weekly close, as always,” it said abstract Josh Rager.
“It’s really hard to get into trades, although there may be some changes in the current state of the market which continues to perform well over the weekend.”
Others focused on the importance of current spot price levels, which sit above the 200-week moving average (MA) at $22,800. Until the end of the week above this trend would be the first for bitcoin since June.
#BTC very close to making a Weekly Close above the 200 week MA
— Rekt Capital (@rektcapital) July 29, 2022
#BTC is very close to reaching a weekly close above the 200 week moving average. Technically it looks like BTC is well on its way to reclaiming the 200 week moving average as support $BTC #Crypto #Bitcoin pic.twitter.com/ue00XDT9O0 — Rekt Capital (@rektcapital) July 29, 2022
Taking a conservative short-term view, however, popular trader Roman demanded a return of at least $23,000 through “overbought” conditions.
So far we have seen a departure from the potential double top call from yesterday.
PA – volume down / price up is bearish. MACD rolling over. RSI overbought.
— Roman (@Roman_Trading) July 29, 2022
$BTC H4. So far, I see divergence regarding yesterday’s potential double top. PA – falling volume / rising bearish price. The MACD turns around. The RSI is overbought. I expect a pullback towards at least 23,000. DT confirms close below 20,700. #bitcoin #cryptocurrency #cryptotrading pic.twitter.com/aOahZDdYyC — Roman (@Roman_Trading) July 29, 2022
Optimism continued to rise in cryptocurrency markets throughout the week, with the index Crypto fear & greed reaching the highest levels since April 6 after emerging from the longest period of extreme fear
At 45/100, the index was officially in “neutral” territory for the day.
Expected to continue bullish
Looking ahead to next month, Cointelegraph contributor Michaël van de Poppe said that equity performance will continue to provide fertile conditions for a cryptocurrency rebound.
Also read: Bitcoin bear market is over, metrics show, as BTC exchange balances hit 4-year low
“It looks like we’ll have this sequel in August, including cryptocurrency and bitcoin,” can we read as part of the July 29 Twitter update.
“It’s the summer rally!”
August was expected to be a quiet month for US macro drivers, with the Federal Reserve not scheduled to change policy until September.
The risk of inflation remained elevated, however, with the next printing of the Consumer Price Index (CPI) scheduled for 10 August. This week, the European Union published its estimate of monthly inflation in the euro area, which is 8.9%, the highest on record.
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