The mood across the crypto ecosystem is noticeably brighter on July 22 following a week of gains helped traders put the events of the past two months behind them and look to a positive future.
The data from Cointelegraph Markets Pro y TradingView show that the price of Bitcoin (BTC) has been hovering around the $23,000 support for the past few days and continues to hold slightly above its 200-week moving average (MA), which has been a reliable indicator. indicator of bear market bottoms in the past.
As the debate over market direction continues, these are the important levels to watch heading into the weekend, according to analysts.
Bitcoin needs a weekly close above $22,800
Independent market analyst Michaël van de Poppe noted the importance of Bitcoin trading above its 200-week MA, who public the chart below highlighting the major support and resistance zones:
According to van de Poppe, Bitcoin is “facing crucial resistance once more” at $23,500, and what happens next will determine whether its price rises or falls back to the support level at $21,500. He explained:
“If that breaks $23,800 I assume we will continue and then $28,000 is on the table, but we also have a clear break above the 200-week moving average confirmed.”
The importance of BTC holding above the 200-week MA was addressed in more detail by market analyst Rekt Capital, who highlighted the need for Bitcoin to see a weekly close above $22,800:
#BTC is see-sawing around the 200-week MA all week
The most important thing will be the confirmation relative to the 200-week MA in the form of a Weekly Candle Close
The 200-week MA represents the price point of USD 22800USD BTC #Crypto #Bitcoin
— Rekt Capital (@rektcapital) July 22, 2022
Anticipating a big move
The recent price action is a sign that “a big move for BTC is coming soon,” according to cryptocurrency trader and pseudonymous Twitter user CryptoGodJohn, who provided the following chart outlining two possible paths Bitcoin might take:
CryptoGodJohn said:
“Break above and hold $24,200. I think we hit $27,000–$28,000 pretty quickly. If we start to drop back into the range, I am looking for a drop to $20,000. Fairly easy invalidation on both, stay safe.”
The possibility of a move in either direction was also noted by Twitter user Mayne, who public the chart below addressing the “potential range downside breakout” for Bitcoin.
They further explained, “The upside might be juicy if we can sustain above $22,500/range high. Losing range high, this was probably a deviation. shorts back to range.”
keeping it simple
For those who are more inclined to hoard and hoard rather than focus on Bitcoin’s daily price movements, Market Analyst Caleb Franzen offered the following information on when would be a good time to do dollar cost averaging:
#Bitcoin analysis with monthly candles & the 12-month Williams%R Oscillator.
When the W%R becomes “oversold” on a 1-year basis, it signals an accumulation zone. When it crosses above the oversold threshold, the bull market stampedes.
We’re in the accumulation zone since May’22. pic.twitter.com/kBrk23PA9F
— Caleb Franzen (@CalebFranzen) July 22, 2022
The total cryptocurrency market capitalization currently stands at $1.048 trillion and the dominance ratio of Bitcoin is 42%.
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