Cryptocurrency fans rejoice to see green in the market on July 19 as months of “only down” price action finally came to an end after the market posted a substantial rally for the first time in a month.
Data from Cryptooshala Markets Pro and trade view shows that much of the newfound excitement is the result of bitcoin (BTC) breaking through resistance at $23,000 to reach a daily high of $23,447, its first significant move above the 200-week moving average.
While many were quick to predict a rise to the mid-$30,000 range, some analysts warn that this could be another fake pump. Let’s take a look at traders’ perspectives on Bitcoin’s move towards $33,000.
Bitcoin Needs Weekly Candle Close Above $22,800
A return above the 200-week moving average was the focus of cryptocurrency analyst Rekt Capital, who published the following chart comments that “For the first time in weeks, BTC is making a decent effort to try and bring back the 200-week moving average as support.”
The 200-week moving average has been a very popular metric in recent weeks because it has served as a reliable bear market indicator that has historically given an indication of when a bottom has been set.
Rect Capital said,
“#BTC needs to close the weekly candle above $22,800 to successfully confirm the return of the 200-week moving average as support.”
There is still room for a pullback to $18,000.
Further insight into what needs to happen to confirm the bullish outlook seen on July 19 has been offered by Phoneix ICF, which on condition The next chart shows the next important resistance level to keep an eye on.
Phoenix ICF said:
“Wait until the 1st candle closes above $23K and then go long. If this is not the case, we will soon see a price below $18k. Be patient and avoid emotional trading.”
Tech experts suggest bitcoin is still far from ideal for daily payments
Traders are looking for resistance at $28,400.
The importance of the current price level has been further explored by Crypto Patel technical analyst who published The following chart shows the possible paths BTC could take in the event of a sharp move out of the current supply zone between $21,700 and $22,800.
Crypto Patel said:
“Scenario 1: If the $22,900 level is broken, then I am ready to buy with $28,400 TP. [take profit]. Scenario 2: – But if $22,800 failed to hold, then there is a high chance of testing the $12k level.”
Based on the current price of bitcoin, the chart above predicts a possible upside to the resistance area around $28,400 followed by a consolidation or pullback before BTC attempts to overcome the resistance found at $32,300.
The total market capitalization of cryptocurrencies currently stands at $1.062 trillion, with a Bitcoin dominance rate of 42.1%.
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Credit : cointelegraph.com