Bitcoin rises to $21,980, market returns to $1 trillion, but analysts cite ‘false move’
- July 10, 2022
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Investors cheer after BTC price jumps 7% to nearly $22,000, but analysts say macro downtrend is likely to prevail in the near term
Hope remains alive for many cryptocurrency investors after the market saw a positive price movement at the end of last Thursday, the 7th, and at the beginning of this Friday, following the movement of gains registered also in the traditional market. With the price of bitcoin close to $22,000, the crypto market has once again surpassed the $1 trillion mark in total market cap.
The green day in the markets comes amid a backdrop of rising US jobless claims, which is a possible sign that “pressure on wages may have peaked,” according to Jamie Cox, a partner in the United States. manager of Harris Financial Group. According to him, a continuation of this trend could result in financial conditions “restricted enough to allow the Fed to scale back rate hikes”.
Data from Cointelegraph Markets Pro and TradingView shows that after trading near $20,400 for most of Thursday, the price of bitcoin (BTC) has soared by nearly 7%, reaching a high very close to $22,000.
BTC/USDT 1-day chart. Source: Reproduction/TradingView
As cryptocurrency enthusiasts try to navigate the choppy waters of the “crypto winter” and seek a bottom for this market, check out what analysts are predicting as the next steps for the price of bitcoin.
Trend remains negative
Twitter user “Roman” posted the following chart noting that “many are getting euphoric and bullish as we have repeated similar candlestick patterns over the past eight months.”
BTC/USDT 1-day chart. Source: Playback/Twitter
In Roman’s opinion, this is just the latest in a series of false moves that will trick many traders into believing the bottom is in, while in reality the trend remains negative: “Falling volume in a range is a consolidation for the continuation of the trend. Not to mention thousands of entries to exchanges before each top.”
Recovery above $23,000 would be bullish
Another trader who holds the view that the trend remains decidedly negative is the one known by his alias “Gilberto” on Twitter, who posted the following chart, noting that the price of bitcoin recently broke out of a pennant formation.
BTC/USD 4-hour chart. Source: Playback/Twitter
About the image, Gilberto said: “High above US$ 23 thousand, for now the daily trend is still bearish”.
As for the potential path of bitcoin price should it continue in the downtrend, market analyst “Crypto Tony” has published the following chart which describes how the “worst case” scenario could take BTC close to $12,000.
BTC/USD 1-week chart. Source: Playback/Twitter
“Crypto Tony” said: “I don’t think we will see the start of the next push [de alta] until the end of next year, and a new high peak before 2024-2025. I’m already positioned at $22-24k and will add if we drop to $17-15k.”
Traders target 200-week moving average
When it comes to metrics that have been reliably used to help determine market bottoms, the 200-week moving average (MA) is one of the most popular and widely cited indicators that traders use to identify good buying opportunities.
BTC/USD 1-week chart. Source: reproduction/Twitter
With bitcoin now below its 200-week MA for the fourth time in its history, speculation has started to mount about how long it will take to recover above that line and what investors’ “appetite” will look like once it gets there.
In response to this possible scenario, market analyst Michaël van de Poppe posted the following tweet describing what he thinks could happen when the 200-week MA rebounds: “There is probably an insane amount of liquidity above the 200-week MA. If bitcoin breaks out of that level, I assume we will likely see a run from $2-5k upwards in just a few days to $28-30k. And then the feeling will change too.”
The total cryptocurrency market cap now stands at just over $1 trillion and bitcoin’s domain fee is 42%, according to data from CoinGecko.
Source: Cointelegraph Brazil