Bitcoin drops to $22.6k and risks further losses if it fails to hold above 200-week MA

Bitcoin drops to $22.6k and risks further losses if it fails to hold above 200-week MA – Mail Bonus

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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.

BTC/USDT 1-Day Chart. Source: TradingView

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:

BTC/USDT 1 Hour Chart. Source: Twitter

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:

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:

BTC/USD 1 hour chart. Source: Twitter

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.

BTC/USD 12 hour chart. Source: Twitter

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:

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.