Crypto enthusiasts rejoiced to see the green all over the market on July 19, as months of “only low” price action finally came to an end after the market launched its first major relief rally in at least a month.
Data from Cointelegraph Markets Pro and TradingView shows that much of the newfound excitement is the result of Bitcoin (BTC) breaking above $23,000 resistance to reach a daily high of $23,447, the first meaningful move above the 200-week moving average.
BTC/USDT 1-day chart. Source: TradingView
While many have quickly predicted a rally to the $30,000 mid-range, a few analysts are warning that it could be another fake pump. Let’s take a look at traders’ views on Bitcoin’s move towards $33,000.
Bitcoin needs a weekly candle close above $22,800
A return above the 200-week moving average was the focus of crypto-analyst Rekt Capital, who posted the following chart commenting, “For the first time in weeks, BTC is making a decent effort to try to recover the 200-week MA as support.”
BTC/USD 1-week chart. Source: Twitter
The 200-week moving average has been a very closely watched metric in recent weeks because it has served as a reliable bear market indicator that has historically provided insight into when the bottom was set.
Rekt Capital said,
“#BTC needs a weekly candlestick close above $22,800 to successfully confirm the recovery of the 200-week moving average as support.”
There is still room to fall back to $18,000
More information on what should happen to confirm the bullish perspective of the gains seen on July 19 was provided by Phoneix ICF, which provided the following chart highlighting the next major resistance level to watch.
BTC/USDT 1-day chart. Source: Twitter
Phoenix ICF said,
“Wait for the 1d candle to close above $23,000 and place your long bets. If not, we will see it below $18,000 soon. Be patient and avoid emotional trading.”
Related: Technicians Report Bitcoin Still Far From Perfect for Daily Payments
Traders expect resistance at $28,400
The significance of the current price level was further explored by technical analyst Crypto Patel, who published the following chart showing the possible paths BTC could take in the event of a sharp directional move out of the current supply zone between $21,700 and $22,800.
BTC/USDT 1-day chart. Source: Twitter
Krypto Patel said,
“Scenario 1: – If the $22,900 level is broken, you will be ready for a long time with $28,400 to take profit [Take Profit]. Scenario 2: – But if you fail to hold $22,800, the probability is high for a test of the $12,000 level.”
Based on the current bitcoin price, the above chart anticipates a potential rise to the resistance area near $28,400, followed by a consolidation or pullback before BTC attempts to take out the resistance at $32,300.
The total cryptocurrency market capitalization is now at $1.062 trillion and the Bitcoin dominance rate is 42.1%.
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
