Bitcoin price appears to be racing toward $24,000, but the analysts warn that a lower support retest is required to confirm the strength of the current breakout.
Crypto fans and enthusiasts are rejoicing at the sight of green throughout the market on July 19 as the months of “down only” price action has ended after the market flashed its first notable relief rally in about a month.
Data acquired from TradingView shows that a lot of the newfound excitement in the result of Bitcoin (BTC) breaking above resistance at $23,000 to reach a daily high of $23,650, its first considerable move above the 200-week moving average.
While many analysts have been quick to predict a climb to the mid-$30,000 range, a few others caution that it might be another fakeout pump. Here is a look at the traders’ perspectives on Bitcoin’s move toward $33,000.
Bitcoin Has To Close Above $22,800 On Its Weekly Candle
The significant move above the 200-week MA has been a primary point of focus for crypto analyst Rekt Capital, who posted the following chart commenting that:
“For the first time in weeks, BTC is putting in a decent effort to try to reclaim the 200-week MA as support.”
The 200-week MA has been a majorly watched metric in recent weeks since it has served as a reliable bear market indicator that has historically offered insight into when a bottom has been set.
Rekt Capital stated,
“#BTC needs to Weekly Candle Close above $22800 to successfully confirm a reclaim of the 200-week MA as support.”
There Is A Possibility For A Pullback To $18,000
More insight into what would have to happen to confirm a bullish outlook on the gains recorded on July 19 was provided by Phoneix ICF, who offered the following chart indicating the next major level of resistance to keep a close eye on.
Phoenix ICF explained:
Buy Bitcoin Now
“Wait for the 1d candle to close above $23K and then place long bets. If that’s not the case, we’ll see it below $18K soon. Be patient & avoid emotional trading.”
Traders Expect Some Resistance At $28,400
The importance of the current price level was also explored by technical analyst Crypto Patel, who posted the following chart highlighting the possible paths that Bitcoin might take in the case of a steep directional move from the current supply zone located between $21,700 and $22,800.
Crypto Patel said,
“Scenario 1:- If Break $22,900 Level then Ready for Long with $28,400 TP [take profit]. Scenario 2:- But If failed to hold $$22,800 then High Possibility to test $12K Level.”
According to the current price of Bitcoin, the market chart above projects a potential run-up to the resistance zone located around $28,400, followed by a consolidation or even a pullback before Bitcoin tries to take out the resistance level that has formed at $32,300.
The general crypto market cap now stands above $1.05 trillion and Bitcoin’s dominance rate is 42.1%.