The mood in the crypto ecosystem improved markedly on Friday after a week of growth helped traders put aside the events of the past two months and look to a positive future.
Data from Cryptooshala Markets Pro and trade view shows that the price of Bitcoin (BTC) has been hovering around support at $23,000 for the past few days and continues to hold slightly above its 200-week moving average (MA), which has been a reliable bear market bottom indicator in the past.
As the debate over the direction of the market continues to rage, analysts say here are important levels to look out for ahead of the weekend.
Bitcoin Needs Weekly Close Above $22,800
The value of Bitcoin trading above its 200-week moving average has been noted by independent market analyst Mikael van de Poppe, who published The following chart shows the main support and resistance zones:
Bitcoin is “again facing critical resistance” at $23,500, and what happens next will determine whether its price heads higher or pulls back to support at $21,500, van de Poppe said. He explained:
“If this breaks down to $23.8K, I assume we will continue and then there will be $28K on the tables, but we also have a clear break above the confirmed 200-week moving average.”
The importance of holding BTC above the 200-week moving average was further reviewed by market analyst Rekt Capital, who highlighted the need for Bitcoin to close above $22,800 for the week:
#BTC swinging around the 200-week moving average all week
The most important will be confirmation regarding the 200-week moving average in the form of a weekly candle close.
— Rekt Capital (@rektcapital) July 22, 2022
Looking forward to the big move
The recent price action is a sign that “a big #BTC move is coming soon,” according to crypto trader and Twitter user alias CryptoGodJohn, who on condition The following diagram shows two possible paths Bitcoin could take:
“Break higher and hold $24,200, I think we will shrink to $27k-$28k pretty quickly. If we start taking back into the range, I’m looking for a flush up to $20K. Pretty easy to cancel both, take care.”
Professional Bitcoin Traders Unhappy With Bullish Positions
The ability to move in any direction was also noted by Twitter user Maine, who published the following chart focuses on the “potential range breakout” for bitcoin.
They further explained: “The upside could be juicy if we can sustain above the $22.5k/range high. Loss of high range, most likely it was a deviation. A move above the high of the range becomes your risk as you target shorts back into the range.”
Everything is simple
For those more inclined to hoard and hold rather than focus on the daily movements of the price of Bitcoin, market analyst Caleb Franzen offered the following insight into when would be the right time for an average dollar value:
#Bitcoin analysis using monthly candles and the 12-month Williams%R oscillator.
When W%R becomes “oversold” on an annual basis, it signals an accumulation zone. When it crosses the oversold threshold, the bull market goes into a panic.
We have been in the accumulation zone since May 22. pic.twitter.com/kBrk23PA9F
— Caleb Franzen (@CalebFranzen) July 22, 2022
The total market capitalization of cryptocurrencies currently stands at $1.048 trillion and Bitcoin’s dominance rate is 42%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect those of Cryptooshala.com. Every investment and trading step involves risk, you should do your own research when making a decision.
Credit : cointelegraph.com