The mood in the cryptocurrency ecosystem was noticeably brighter on July 22 after a week of gains that 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 Bitcoin (BTC) price has been hovering around the $23,000 support over the past two days and continues to stabilize slightly above the 200-week moving average (MA), which has been reliable. Indicator of bear market bottoms in the past.
BTC/USDT 1-day chart. Source: TradingView
As the debate over market direction continues to rage, here are the important levels to watch as the weekend approaches, according to analysts.
Bitcoin needs a weekly close above $22,800
Noting the importance of Bitcoin trading above the 200-week moving average, independent market analyst Michaël van de Poppe has published the following chart highlighting key support and resistance areas:
BTC/USDT hourly chart. Source: Twitter
According to van de Poppe, Bitcoin faces “critical resistance once again” at $23,500, and what happens next will determine whether its price rises or falls to the support level at $21,500. It is to explain:
“If that price breaks at $23.8K, I suppose we will continue, and then there will be $28,000 on the tables, but we also have a clear breakout above the 200 week EMA.”
The importance of Bitcoin holding above the 200-week moving average was addressed by market analyst Rekt Capital, who highlighted the need for Bitcoin to see a weekly close above $22,800:
Expect a big move
The recent price action is a sign that “a big move for #BTC is coming soon,” according to crypto trader and Twitter user CryptoGodJohn, who provided the following chart outlining two potential paths Bitcoin could take:
BTC/USD hourly chart. Source: Twitter
“Break above and hold $24,200. I think we’re squeezing $27,000-$28K fairly quickly. If we start accepting back into the range, I’m looking for a stream of $20k. It’s very easy to invalidate both, keep For your safety “.
Related: Pro Bitcoin Traders Uneasy about Bullish Positions
Twitter user Mayne also noted the possibility of a move in either direction, as he posted the following chart on Bitcoin’s “Potential Range Breakout”.
BTC/USD 12 hour chart. Source: Twitter
They further explained: “The uptrend can be impressive if we can hold above $22.5K/high range. Losing the high range, this was most likely a skew. Moving above the high range becomes your risk as you target shorts back in the range.” .
keep it simple
For those who tend to accumulate and accumulate rather than focus on the daily price movements of bitcoin, market analyst Caleb Franzen offers the following insight when the time is right for dollar cost averaging:
The total cryptocurrency market capitalization is now at $1.048 trillion and the Bitcoin dominance rate is 42%.
The opinions and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.