The mood in the cryptocurrency ecosystem is noticeably brighter on July 22 after a week of gains helped traders put the events of the past two months behind them and look to a positive future.
Data from Cointelegraph Markets Pro and TradingView show that the price of Bitcoin (BTC) has hovered around support at $23,000 in recent days and continues to hold just above the 200-week moving average (MA), which has been reliable. an indication of the bottom of a bear market in the past.
As the debate over market direction continues to rage, here are the key levels to watch heading into the weekend, according to experts.
Bitcoin needs a weekly close above $22,800
The importance of Bitcoin trading above the 200-week MA was noted by independent market analyst Michaël van de Poppe, who put in the following table showing the main support and resistance areas:
According to van de Poppe, Bitcoin is facing critical resistance again at $23,500, and what happens next will determine whether its price heads higher or pulls back to support at $21,500. He explained:
“If it breaks $23.8K, I expect we’ll continue and then $28K is on the table, but we also have a clear break above the 200-week MA confirmed.”
The importance of BTC above the 200-week MA was further discussed by market analyst Rekt Capital, who noted the need for Bitcoin to see a weekly close above $22,800:
#BTC is taking care of 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 of $22800$BTC #Encryption #Bitcoin
— Rekt Capital (@rektcapital) July 22, 2022
Looking for a big move
The recent price action is a sign that “a big move for #BTC is about to happen soon,” according to crypto broker and Twitter user CryptoGodJohn, who given the following chart showing two possible paths Bitcoin could take:
CryptoGodJohn said:
“Break above and keep $24,200. I think we’ll squeeze up to $27K–$28K pretty quickly. If we start accepting back into range, I’m looking for a flush down to $20K. Pretty easy invalidation of both, rest assured.
Connected: Pro Bitcoin traders are uncomfortable with bullish positions
The possibility of going either way was also suggested by Twitter user Mayne, who put in the following chart that discusses the “possible range breakout” for Bitcoin.
They further explained, “What could be juicy if we can keep above $22.5k per stage high. Lose range high, this was probably an anomaly. Cross range high becomes your risk when aiming shorts back into range.
Keeping it simple
For those more inclined to hoard and hodl instead of focusing on Bitcoin’s daily price movements, market analyst Caleb Franzen provided the following insight on when it would be a good time to hit dollar cost averaging:
#Bitcoin analysis with monthly candles and the 12-month Williams%R Oscillator.
When W%R becomes “oversold” on a 1-year basis, it indicates an accumulation zone. When it crosses the oversold threshold, the bull market collapses.
We have been in the accumulation zone since May 22nd. photo.twitter.com/kBrk23PA9F
— Caleb Franzen (@CalebFranzen) July 22, 2022
The total cryptocurrency market capitalization currently stands at $1.048 trillion, and Bitcoin’s dominance rate is 42%.
The views and opinions expressed here are solely those of the authors and do not necessarily reflect the views of Cointelegraph.com. Every investment and business involves risk, you should do your own research when making a decision.
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