bitcoin (BTC) spoofed a breakout to new six-week highs through July 31 as a showdown for the weekly and monthly close approached.
‘Bart Simpson’ Welcomes Traders to BTC’s Monthly Close
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD reversed all of its gains from the start of the weekend, falling from $24,670 to $23,555 in hours.
The resulting chart structure was all too familiar to long-term market participants, creating a “Bart Simpson” shape on hourly timeframes.
Liquidations nonetheless remained manageable, with the cross-crypto tally totaling $150 million in the 24 hours to writing, according to data from the analytics resource. coin glass — less than the previous days.
For popular trader and analyst Rekt Capital, there was now reason to believe that the upcoming weekly candle close would confirm that Bitcoin had re-established a key trendline as support after weeks of failure.
Looks like #BTC successfully retested the 200 week MA as support$BTC #Crypto #Bitcoins pic.twitter.com/yg75xrxXQB
—Rekt Capital (@rektcapital) July 30, 2022
Going forward, however, not everyone was convinced that the current strength of the market still had much room to continue.
In one of various Twitter posts over the weekend, Material Scientist, creator of on-chain analytics resource Material Indicators, observed that funding rates on derivatives platforms were becoming increasingly positive, indicating too strong a consensus that prices could rise unchecked.
“Negative funding has almost completely reset, like late March. We might even see positive funding on some alts soon,” he said. wrote.
“I think there is one last pop in the shaded area before the bears rally dies down.”
Nonetheless, the BTC/USD pair was still on track to generate monthly gains of around 19% for July, in stark contrast to any other month of the year so far.
According to data from Coinglass, July returns were even poised to be Bitcoin’s best since all-time highs in 2021.
One of the “biggest bull markets” could now be waiting for Bitcoin
Other outlooks paid little attention to the prospect of another near-term correction.
Related: Historically Accurate Bitcoin Metric Breaks Out of Buy Zone in ‘Unprecedented’ 2022 Bear Market
Looking ahead to potential performance in the second half of 2022, Mike McGlone, Senior Commodities Strategist at Bloomberg Intelligence, left no doubt as to how Bitcoin in particular would fare.
Hints that the Federal Reserve is addressing rate hikes “meeting by meeting,” Chairman Jerome Powell said this week, “could mark the pivot for #Bitcoin to resume its trend of outperforming most assets,” he said. argued on social networks.
“July marked Bitcoin’s most significant reduction in history from its 100 and 200 week moving averages, with implications for its recovery,” he added of the 200 trendline. weeks.
“I see the risk versus reward tilting favorably for one of the biggest bull markets in history.”
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