Sentiment across the cryptocurrency ecosystem markedly improved 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 oscillating around the $23,000 support level over the past few days and continues to hold just above its 200-week moving average (MA), a solid An indicator of past bear market bottoms.
Analysts said that as the debate over the market’s direction continues to rage, here are the important levels to watch heading into the weekend.
Bitcoin needs a weekly close above $22,800
Pointing out the importance of Bitcoin trading above its 200-week MA, independent market analyst Michaël van de Poppe posted the following chart highlighting major support and resistance areas:
According to van de Poppe, Bitcoin is “again facing key resistance” at $23,500, and what happens next will determine whether its price moves higher or falls back to support at $21,500. He explained:
“If it breaks $23.8K, I’m assuming we will continue, then $28K is on the table, but we also have confirmation of a clear break above the 200-week MA.”
Further emphasising the importance of BTC staying above the 200-week SMA, market analyst Rekt Capital emphasized that Bitcoin needs to see a weekly close above $22,800:
#BTC fluctuated around the 200-week SMA all week
The most important is confirmation of the 200-week SMA in the form of a weekly candle close
The 200 Week EMA represents the price point of $22800 BTC #Crypto #Bitcoin
— Rekt Capital (@rektcapital) July 22, 2022
Looking forward to big moves
Cryptocurrency trader and pseudonymous Twitter user CryptoGodJohn said that recent price action suggests that “a big move for #BTC is on the horizon,” offering the following chart outlining two possible paths Bitcoin could take:
“Break out and hold $24,200. I think we’re getting to $27K-28K pretty quickly. If we start accepting back into that range, I’m looking for a straight flush as low as $20k. Both are easy to fail, keep Safety.”
Related: Professional Bitcoin traders uncomfortable with bullish positions
The possibility of a move in either direction was also pointed to by Twitter user Mayne, who posted the following chart illustrating Bitcoin’s “potential range breakout.”
They further explained: “If we can hold above the $22,500/range high, the upside could be substantial. Losing the range high, it could be a deviation. When you re-target the bears back into that range, Above the range high will be your risk.”
keep it simple
For those who prefer to accumulate and hold rather than focus on Bitcoin’s day-to-day price action, market analyst Caleb Franzen offers the following insights on when is a good time for dollar cost averaging:
#Bitcoin analysis of monthly candles and 12-month Williams%R oscillator.
When W%R becomes “oversold” on a 1-year basis, it marks an accumulation zone. When it crosses the oversold threshold, the bull market stomps.
We are in accumulation zone since 5/22. pic.twitter.com/kBrk23PA9F
— Caleb Franzen (@CalebFranzen) July 22, 2022
The overall cryptocurrency market cap is currently $1.048 trillion, with Bitcoin dominance at 42%.
The views and opinions expressed here are those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk and you should do your own research when making a decision.