Bitcoin price looks to be approaching $24,000 in July as sentiment moves out of the fear zone

by · August 11, 2022

Bitcoin (BTC) saw volatility drop over the last weekend of July as the monthly close approached.

BTC/USD 1-Hour Candlestick Chart (Bitstamp). Source: TradingView

200-week moving average in focus for the end of July

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD held $24,000 as resistance until July 30.

The pair had benefited from macro tailwinds across risk assets in the second half of the week, including a flush finish for US stocks. The S&P 500 and Nasdaq Composite Index rose 4.1% and 4.6% respectively during the week.

However, with off-speak trading apt to trigger volatile ratios into weekly and monthly bars thanks to thinner liquidity, analysts warned anything could happen between now and July 31.

“Just going to sit back and watch the market until the weekly close as always,” Josh Rager in summary:

“Hard to get into any serious trades, although they may be a few outliers in today’s market condition that continue to perform well over the weekend.”

Others focused on the significance of current spot price levels, which were above the key 200-week moving average (MA) of $22,800. Finishing the week above this trendline would be the first for Bitcoin since June.

However, using a conservative short-term view, popular trader Roman called for a return to at least $23,000 thanks to “overbought” conditions.

Optimism continued to rise across the crypto markets throughout the week, with the Crypto Fear & Greed Index reaching its highest levels since April 6 after breaking out of its longest period of “extreme fear”.

At 45/100, the index was officially in “neutral” territory on the day.

Crypto Fear & Greed Index (screenshot). Source: Alternative.me

Bullish continuation planned for August

Looking to next month, Cointelegraph contributor Michaël van de Poppe said stock performance will continue to provide fertile conditions for a crypto rebound.

Related: Bitcoin Bear Market Over, Metric Hints As BTC Exchange Balance Hits 4-Year Low

“Sounds like we’re going to get that continuation in August, including with crypto and Bitcoin,” part of a Twitter update on July 29 tired:

“It’s summer relief rally!”

August was set to be a quiet month for US macro triggers, with the Federal Reserve not expected to change policy in a planned manner until September.

The risk of increasing inflation remained, however, with the next printing of the consumer price index (CPI) due on 10 August. This week, the EU reported its highest ever monthly inflation estimate for the Eurozone at 8.9%.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade involves risk, you should do your own research when making a decision.