Bitcoin price declines to $24K as “classic short setup” spoils the fun for the bulls
Bitcoin (BTC) saw fresh volatility after July’s last Wall Street open, as peaks north of $24,000 remained solid resistance.
Resistance hits BTC at $24,000
Data from Cointelegraph Markets Pro and TradingView reflected bulls’ continued struggle as BTC/USD lurched around the $24,000 mark on July 29.
The pair had attempted to match the week’s local high of $24,450 and this ultimately failed to materialize as a resurgent US dollar pushed the crypto despite the rally in US stocks.
The US dollar index (DXY) continued higher in Wall Street trading, passing 106 after falling to its lowest levels since July 5.
Record inflation in the Eurozone added to the mix of macro triggers on the day, while the month-end remained a guessing game for Bitcoin analysts.
On short time frames, popular trader Crypto Tony saw what he called a “classic short setup” around the high, which remained Bitcoin’s best since mid-June.
A classic short layout with a clear void point..
Did anyone catch it pic.twitter.com/DTW2rAYM9K
— Crypto Tony (@CryptoTony__) 29 July 2022
Nevertheless, other key levels remained suitable to act as support in the event of a deeper decline. These included Bitcoin’s 200-week moving average of around $22,800 and realized price of $21,820.
#bitcoin back above realized price, light blue, I like it pic.twitter.com/Rr0r4boljC
— PlanB (@100trillionUSD) 29 July 2022
In the case of the former, however, Bitcoin’s weekly candle would need to close for confirmation of a resistance/support flip, fellow trader and analyst Rekt Capital noted on the day.
The weekly close will also act as the monthly close, making July 31 an important psychological reckoning day after June’s 40% move – Bitcoin’s worst monthly performance since September 2011, figures from on-chain data resource Coinglass confirmed.
180 days to “full recovery”?
Summing up 2022 for crypto markets so far, a new report from chain analytics firm Glassnode and market site CoinMarketCap hinted at how long the road to recovery may be.
Related: Bitcoin Bear Market Over, Metric Hints As BTC Exchange Balance Hits 4-Year Low
Following the chaos, which began with Terra (LUNA) – now renamed Terra Classic (LUNC) – collapsing in May, there had been a “reset” across crypto assets, the report claimed.
With Bitcoin and Ether (ETH) alone down 75% from all-time highs in less than a year, it may not be until 2023 that the trend can change definitively.
“The market has only been in this position since mid-June, and previous bear cycles have taken an average of 180 days before full-scale recovery was in effect,” it said.
In particular, Glassnode and CoinMarketCap highlighted the plight of miners who, as Cointelegraph reported, faced ongoing pressure on profit margins over the second quarter and recently. The report concluded:
“All in all, 2022 has so far been a major reset of market expectations, a major de-leveraging, and ideally the start of a new set of foundations, upon which even taller structures can be built.”
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