The mood in the cryptocurrency ecosystem is significantly 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 shows that the price of Bitcoin (BTC) has been hovering around the support at $23,000 for the past two days and continues to hold slightly above its 200 week moving average (MA), which has been a reliable indicator of bear market lows in the past.
As the debate over market direction continues to rage, here are the important levels to watch ahead of the weekend, analysts say.
Bitcoin needs a 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 job the following chart highlighting the main support and resistance areas:
According to van de Poppe, Bitcoin is “again facing crucial resistance” at $23,500, and what happens next will determine whether its price rises or falls to support at $21,500. He explained:
“If it drops to $23.8,000 I guess we will continue and $28,000 will be on the tables, but we also have a clear break above the confirmed 200 week MA.”
The significance 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 moving around the 200-week MA all week
The most important thing will be the confirmation relative to the 200 week MA in the form of a weekly candle Close
—Rekt Capital (@rektcapital) July 22, 2022
Anticipating a big move
The recent price action is a sign that “a big move for #BTC is coming soon,” according to Crypto Trader and pseudonymous Twitter user CryptoGodJohn, who provided the following table outlining two possible paths Bitcoin could take:
“Cross above and hold $24,200. I think we are reaching $27,000-28,000 fairly quickly. If we start accepting to move back into the range, I’m looking for a flush down to $20,000. Fairly easy invalidation on both, stay safe.
The possibility of a two-way movement was also noted by Twitter user Mayne, who job the following chart discussing the “potential breakout range” for Bitcoin.
They further explained, “The upside could be juicy if we can hold above $22.5,000/high end. Losing the high range was probably a deviation. The move above the high range becomes your risk when targeting shorts within the range.
keep it simple
For those more inclined to hoard and hold rather than focus on Bitcoin’s daily price movements, market analyst Caleb Franzen has offered the following information on when to average the dollar cost:
#Bitcoins analysis with monthly candles and the Williams%R oscillator over 12 months.
When the W%R becomes “oversold” over 1 year, it signals an area of accumulation. When it crosses the oversold threshold, the bull market gets carried away.
We have been in the accumulation zone since May 22. pic.twitter.com/kBrk23PA9F
— Caleb Franzen (@CalebFranzen) July 22, 2022
The overall cryptocurrency market capitalization now stands at $1.048 trillion, and Bitcoin’s dominance rate is 42%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.