Bitcoin (BTC) tested $23,000 as support on August 1st Wall Street with a focus on the major moving averages.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
The 200-week moving average is getting a lot of attention
It follows data from Cointelegraph Markets Pro and TradingView BTC/USD as bulls and bears battle for control amid a tight trading range.
Inspired by its highest weekly close since mid-June, bitcoin the day before, its monthly candle also made the biggest gains since before last year’s all-time highs of $69,000.
However, among analysts and traders, the market’s ability to stay higher for several more candles was important.
Although important trendlines such as the 200-week moving average (MA) and the achieved price have recovered, Bitcoin will not be out of danger until it starts producing full weekly candles without retesting these levels.
“Bear Market Rally is still alive and well,” Material Indicators, the on-chain analytics resource, explained today.
“To call anything else would require confirmations of valid breakouts above the major moving averages. 200 weeks and 50 months are the first things to consider in BTC, but only if we have full candles above the line. Nullifies the wick below.”
BTC/USD 1-month candlestick chart (Bitstamp) with a 50-month moving average. Source: TradingView
As such, $22,880 and $21,965 were base lines to hold for the bulls and increasingly close to the spot.
Fellow trader and analyst Rekt Capital nonetheless predicted that Bitcoin will naturally attempt to retest the 200-week moving average as short-term support.
Commenting on price strength, he noted that the recovery of the 200-week moving average was the first such event after an “extended downtrend” since the collapse of COVID-19 in March 2020.
“Bitcoin may struggle to break above the $24,000 level, but the weekly candle finally closed above the 200-week moving average and technical sentiment could improve significantly,” an additional comment.