Bitcoin (BTC) stuck to its realized price just under $22,000 on July 25 as Wall Street opened with steady performance.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Bitcoin Gives Up More Key Levels
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it consolidated after dropping from $23,000 overnight.
The pair echoed equities in quiet trading ahead of the US Federal Reserve’s July 27 interest rate decision. Analysts have been anticipating several days of volatility, and while bitcoin buyers’ interest has been strong below the spot price, everything could still change.
Omar Ashraf, founder of the trading tool TradeZella, predicted a “great week for the markets.”
Tons of big names are reporting earnings along with the FOMC as of Tuesday followed by an announcement on Wednesday. The big week does not always mean that the market has to see movement, it could be a period of time for the market to absorb the information for the next step.”
As traders prepare for the reaction, Bitcoin has become unsettled as it struggles to hold any of the 200-week moving averages (MA), the 50-day moving averages, or the achieved prices, which are at $22,700, $22,200 and $21,850, respectively.
BTC/USD 1 day candle chart (Bitstamp) with 50 or 200 day moving average. Source: TradingView
The most recent one, the price at which the Bitcoin average moved last, recovered as support just a week ago.
Comparing realized price behavior this year with previous bear market years, analyst Root warned that the next move could be another extended dive below the trend line.
Taking a more bullish view, meanwhile, PlanB, the creator of Bitcoin price-flow modeling, noted that the speed with which Bitcoin rebounded above the 200-week moving average this month could belie the underlying strength absent from similar bear stages.
“It usually takes much longer after BTC drops below the actual price for BTC to jump back above the 200-week moving average. But it has already happened.”
“Also, the 200-week moving average and the achieved price have already been touched (which usually takes longer as well).”
