Key facts:
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Little by little, bitcoin is setting higher price floors.
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A sustained recovery might be on the cards this weekend.
Bitcoin (BTC) investors, traders, analysts, and enthusiasts have been waiting for months for a breakout that will mark the arrival of a new bull market for the cryptocurrency. And the current structure seems to indicate a move in that direction, at least in the short term.
Price movements seen since mid-June have been in a range between $17,600 and $24,600 at its lowest and highest points, respectively. But a structure that has been forming around those moves suggests a bullish price consolidation.
In the words of the analyst and trader known on Twitter as @TheCrowtrades, basically each time the lows (possible supports) have been setting higher. And the highs (resistance potentially indicative of a bullish breakout) have also been increasing, as noted by the analyst via Twitter.
Indeed, in each downward movement during the last weeks, the inflection point has been higher than the previous ones. For example, in mid-June BTC hit the 17,600 as the lowest point. Then, at the end of that month, it rallied following touching $18,600..
Towards the middle of July, a bearish movement returned that did not go beyond 18,900, while on July 26, bitcoin rallied following touching $20,700. The latter is the lowest point for the cryptocurrency for three weeks. Right now, at the time of writing this article, BTC is trading above $23,000.
As shown in the graph above, taken from the site TradingView, BTC seems to be climbing a kind of ladder with higher and higher floors. For @TheCrowtrades, this is a positive sign. And he will particularly stay bullish as long as he sees this pattern.
End of bear market?
For weeks, the big question among analysts has been: are we reaching the end of the bear market? After all, this negative situation has been maintained throughout this year 2022 in which bitcoin has lost more than half of its price.
These positive signs of behavior shown by the cryptocurrency in recent weeks seem to start to coincide with the recent recovery above the 200-week moving average. This metric, which BTC has historically stayed above, I might save the key for a bigger comebackwhich already seems to have greater optimism among traders.
As we reported earlier this Saturday in CriptoNoticias, analysts like Scott Melker are looking precisely at that metric to closing this weekend. If BTC holds above that level, which is currently hovering around $22,800, it might leave considering a steeper breakout.
