Bitcoin Holds 5 Weeks As Trader Suggests ‘Parabolic’ Bear Trend Is Over

Bitcoin (BTC) took aim at $24,000 on July 20 after a night of solid gains put bulls in the driver’s seat.

BTC / USD 1-hour light chart (bit stamp). Source: TradingView

Parables are broken

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it breached $23,800, the highest level since June 13.

Against expectations, crypto staged a recovery beyond an intra-hour “fake-out” as risk assets benefited from falling US dollar strength.

The inverse correlation between the US Dollar Index (DXY) and Bitcoin remained the centerpiece of the day, with the dollar coming off twenty-year highs at the end of the previous week.

US dollar index (DXY) vs. BTC/USD 1-Day Candlestick Chart. Source: TradingView

“The dollar is taking a good beating today from the bears,” popular trader Crypto Tony told Twitter followers as the outbreak took shape.

“Good Sign for Bitcoin as Things Cool for DXY.”

Fellow analyst Wolf, meanwhile, saw the breakdown of a “parabolic trend” in place on the DXY throughout 2022. At the same time, according to analysis by popular trader Jibon, BTC/USD had ended its parabolic run to macro lows.

These “expectations” referred to a strategy that sees BTC/USD rising to $40,000 before a new bearish phase sets in a fresh macro bottom.

Major trend lines see a sudden test

Back to current price action, meanwhile, significance came in the form of crucial trend lines being broken.

Related: 100X Bitcoin energy consumption would mean “absurd” $ 20M BTC price – developer

Among them were the 200-week moving average (WMA) of $22,800 and Bitcoin’s realized price of $21,934 as of July 19, confirmed data from chain analysis firm Glassnode.

Bitcoin realized price chart. Source: Glassnode

Both are classic fixtures in Bitcoin bear markets, with BTC/USD typically trading below while preserving levels as fundamental support.

Attention thus focused on the weekly close, which would confirm a breakout from the 200 WMA.

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