bitcoin (BTC) saw further volatility after Wall Street’s final open in July, with highs north of $24,000 remaining strong resistance.
Resistance hits BTC at $24,000
Data from Cointelegraph Markets Pro and TradingView reflected the continued struggle of the bulls as BTC/USD hovered around the $24,000 mark on July 29.
The pair had attempted to tie the week local high of $24,450this ultimately failed to materialize as crypto under pressure from the US dollar despite gains in US equities.
The U.S. dollar index (DXY) continued higher during the Wall Street session, rising to 106 after falling to its lowest levels since July 5.
Eurozone record inflation added to the day’s mix of macro triggers, while the monthly close remained a guessing game for Bitcoin analysts.
Over short periods, popular Crypto trader Tony observed what he called a “classic short pattern” around the top, which has remained Bitcoin’s best since mid-June.
A classic short setup with a clear invalidation point..
Did anyone catch it pic.twitter.com/DTW2rAYM9K
— CryptoTony (@CryptoTony__) July 29, 2022
Nevertheless, other key levels remained likely to serve as support in the event of a larger decline. These included Bitcoin’s 200-week moving average at around $22,800 and realized price at $21,820.
#bitcoin return above the realized price, light blue, I like it pic.twitter.com/Rr0r4boljC
— PlanB (@100billionUSD) July 29, 2022
Regarding the former, however, Bitcoin’s weekly candle should close to confirm a resistance/support reversal, said fellow trader and analyst Rekt Capital. Noted day.
The weekly close would also act as a monthly close, making July 31 a key psychological reckoning day after June’s 40% pullback – Bitcoin’s worst monthly performance since September 2011Coinglass on-chain data resource digits confirmed.
180 days before “full recovery”?
Summarizing 2022 so far for the crypto markets, a new report from on-chain analytics firm Glassnode and market site CoinMarketCap suggests how long could be the road to recovery.
Related: Bitcoin bear market is over, metric indices as BTC exchange balances hit 4-year low
After the chaos that began with the Terra (LUNA) – now renamed Terra Classic (LUNC) – collapsed in May, a “reset” has occurred across crypto assets, according to the report.
With Bitcoin and Ether (ETH) alone down 75% from all-time highs in less than a year, it may take until 2023 for the trend to finally change.
“The market has only been in this position since mid-June, and previous bear cycles have taken an average of 180 days before the full-scale rally kicked in.”
Glassnode and CoinMarketCap, in particular, highlighted the fate of minors which, as Cointelegraph reported, was facing compression of profit margins in Q2 and more recently. The report concluded:
“Overall, 2022 so far has been a major reset in market expectations, far-reaching deleveraging and, ideally, the start of a new set of foundations, on which even taller structures can be built. “,
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