BTC price is racing toward $24,000, but analysts warn that a lower support retest is needed to confirm the strength of the current breakout.
Crypto fans are rejoicing at the sight of green across the market on July 19 as the months of “down only” price action have finally come to an end after the market flashed its first substantial 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 resistance at $23,000 to hit a daily high of $23,447, its first meaningful move above the 200-week moving average.BTC/USDT 1-day chart. Source: TradingView
While many have been quick predict a climb to the mid-$30,000 range, a few analysts caution that it could be another fakeout pump. Let's take a look at traders' perspectives on Bitcoin's move toward $33,000.
The move back above the 200-week MA has been a point of focus for cryptocurrency 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.”BTC/USD 1-week chart. Source: Twitter
The 200-week MA has been a highly watched metric in recent weeks because it has served as a reliable bear market indicator that has historically provided insight into when a bottom has been set.
Rekt Capital said,
“#BTC needs to Weekly Candle Close above $22800 to successfully confirm a reclaim of the 200-week MA as support.”
Further insight into what would need to happen to confirm a bullish perspective on the gains seen on July 19 was offered by Phoneix ICF, who provided the following chart highlighting the next major level of resistance to keep an eye on.BTC/USDT 1-day chart. Source: Twitter
Phoenix ICF said,
“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.”
The importance of the current price level was further explored by technical analyst Crypto Patel, who posted the following chart outlining the possible paths that BTC could take in the event of a sharp directional move from the current supply zone found between $21,700 and $22,800.BTC/USDT 1-day chart. Source: Twitter
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.”
Based on the current Bitcoin price, the chart above predicts a possible run-up to the resistance area near $28,400, followed by a consolidation or pullback before BTC attempts to take out the resistance found at $32,300.
The overall cryptocurrency market cap now stands at $1.062 trillion and Bitcoin’s dominance rate is 42.1%.
The views 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 conduct your own research when making a decision.