Bitcoin falls to $22.6K, risks further losses if it fails to hold above 200-week MA
The mood across 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 towards a positive future.
Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin (BTC) has been hovering around support at $23,000 for the past couple of days and continues to remain slightly above the 200-week moving average (MA), which has been a reliable indicator of bear market bottoms in the past.
As the debate over the market’s direction continues to rage, here are the key levels to watch heading into the weekend, according to analysts.
Bitcoin needs weekly close above $22,800
The importance of Bitcoin trading above its 200-week MA was noted by independent market analyst Michaël van de Poppe, who posted the following chart highlighting the key support and resistance zones:
According to van de Poppe, Bitcoin “faces decisive resistance again” at $23,500, and what happens next will determine whether the price goes higher or pulls back to support at $21,500. He explained:
“If it breaks $23.8K, I guess we continue and then $28K is on the table, but we also have a clear breakout above the 200-week MA confirmed.”
The importance of BTC holding above the 200-week MA was further addressed by market analyst Rekt Capital, who highlighted the need for Bitcoin to see a weekly close above $22,800:
#BTC is hovering around the 200-week MA all week
The most important thing will be the confirmation in relation to the 200-week MA in the form of the Weekly Candle Close
The 200-week MA represents the $22,800 price point$BTC #Crypto #Bitcoin
— Rekt Capital (@rektcapital) 22 July 2022
Expect a big move
The recent price action is a sign that “a big move for #BTC is going to happen soon,” according to crypto trader and pseudonymous Twitter user CryptoGodJohn, who made sure of the following diagram outlining two possible paths Bitcoin could take:
CryptoGodJohn said:
“Spend over and hold $24,200. I think we’ll squeeze to $27K-$28K pretty quickly. If we start accepting back to the range, I’m looking for a flush down to $20K. Pretty easy invalidation on both, rest assured.”
Related: Pro Bitcoin traders are uncomfortable with bullish positions
The possibility of a move in either direction was also noted by Twitter user Mayne, who posted the following chart that addresses the “potential range break” for Bitcoin.
They further explained: “The upside could be juicy if we can hold above $22.5k/range high. Loses range high, this was probably an anomaly. The move over the range high becomes your risk as you target the shorts back to the area.”
Keeps it simple
For those more inclined to accumulate and hodl as opposed to focusing on the daily price movements of Bitcoin, market analyst Caleb Franzen offered the following insight on when would be a good time to dollar cost average:
#Bitcoin analysis with monthly candles and 12-month Williams%R Oscillator.
When W%R becomes “oversold” on a 1-year basis, it signals an accumulation zone. When it crosses over the oversold threshold, the bull market rages.
We have been in the accumulation zone since May 22. pic.twitter.com/kBrk23PA9F
— Caleb Franzen (@CalebFranzen) 22 July 2022
The total cryptocurrency market cap is now at $1.048 trillion and Bitcoin’s dominance rate is 42%.
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.
