For Bitcoin bulls to rest easy, levels right below the current $23,000 must hold at the weekly close, say experts. Through the end of July 22, Bitcoin (BTC) rose again above $23,000 as interest grew in the forthcoming weekly closure.
Bitcoin price must maintain at least $22,400.
After momentarily dropping around $22,000, according to data from Cointelegraph Markets Pro and TradingView, the BTC/USD exchange rate has recovered.
The 50-day and 200-week moving averages (MAs) have failed to change from resistance to support, placing the pair’s trading in a crucial area for bulls on the day.
To gauge the strength of Bitcoin’s most recent upswing, which at one time produced weekly gains of up to 25%, analysts were waiting for the weekly candle to close.
Popular trader and analyst Rekt Capital recently tweeted, in part, that “$BTC needs to Weekly Close above $22800 to conduct a recapture of the 200-week MA as support.”
Jibon, a fellow trader, placed greater importance on $22,400 as a required minimum to end the week. “Decision Time: $BTC will reach 30–40K or 12–15K next week. In a tweet that day, he stated, “I Want Weekly Close over $22,401.”
He debated the prognosis and said, “So all bullish movements are transient swings.”
Trading company QCP Capital expressed concerns about the near-term prospects for either Bitcoin or altcoins to soar substantially higher in its most recent market update published on the day.
Researchers stated: “In terms of spot direction, we are not sure if the positive momentum continues in a significant way.
“The speed of this move higher felt positioning-driven (market was caught short) and the market is starting to show some signs of exhaustion.”
A significant event that will cause significant volatility is the July 27 meeting of the Federal Open Markets Committee (FOMC) of the US Federal Reserve.
It also said that markets were now anticipating a 75-basis-point increase in benchmark interest rates this month rather than the larger 100-basis-point possibility that had been expected in response to the inflation data.
“Since the high CPI print, the market has been decisively pricing out the probability of a 100bps hike in the July FOMC,” the update read.
“Currently, a 20% chance of 100bps is still being priced in but our view is that 75bps is the most the Fed will do. So expect another boost as 100 bps gets completely priced out.”
Bets increase on dollar breakdown
As the U.S. dollar index (DXY) consolidated below twenty-year highs, meanwhile, analysts were waiting for a long-term parabolic uptrend to show signs of cracking.
USD, as Cointelegraph continues to report, remains distinctly inversely correlated with cryptoasset performance.
“It will be a good day when this finally breaks,” popular commentator Rickus summarized about the impact of a weaker dollar on risk assets.