Bitcoin bulls defend $23K amid warning bear market rally ‘alive and well’

Bitcoin (BTC), which tested $23,000 support at the Aug. 1, Wall Street Open, with key moving averages in emphasis, was supported by Bitcoin (BTC).

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

The 200-week moving mean gets a lot of attention

Data from TradingView and Cointelegraph Markets Pro followed BTC/USD as bears and bulls fought for control in a tight trading range.

Bitcoin was energized by its highest weekly close since mid June the day before, and its monthly candle produced the largest gains since last year’s $69,000 all time highs.

Analysts and traders agree that the most important thing was the ability of the market to rise for many more candles.

Bitcoin has not reclaimed important trendlines like the 200-week moving mean (MA) or realized price. Bitcoin will continue to be in the game until it produces whole weekly candles, without retests.

Material Indicators, an on-chain analytics resource, explained that the Bear Market Rally was still alive and well.

To call it anything else, you need to confirm that there have been valid breakouts above the key MAs. BTC can be used in the 200 Week and 50 month, provided that we have enough candles to reach the line. “A wick below the line is invalid.”

BTC/USD 1-month candle charts (Bitstamp), with 50-month MA. Source: TradingView

Therefore, bulls should hold $22,880 or $21,965 and keep spot prices closer to the actual price.

Rekt Capital, a fellow trader and analyst, predicted that Bitcoin would naturally seek to retest 200-week MA support in the near term.

The new #BTC Weekly Close above the 200-week MA means that price will try to retest this MA as new support this week BTC already held the MA as support last week, as evidenced by the downside wick Now it will try to hold it for a second consecutive week$BTC #Crypto #Bitcoin pic.twitter.com/350VYgi825
— Rekt Capital (@rektcapital) August 1, 2022

He commented on price strength but noted that the 200-week MA recovery was the first after an “extended downward trend” since March 2020 COVID-19 crash.

“Bitcoin may struggle to break above $24,000, but its weekly candle closed above the 200 week moving average and it could significantly improve the technical sentiment,” Zain Haider (co-founder of Blockchain Q&A platform Answerly), summarizes in the additional commentary.

On-chain activity is “lackluster at its best”

The day ended flat for the United States stock market. Bitcoin and other altcoins saw little macro pressure that would have an impact on price action.

Related: 5 Things You Should Know About Bitcoin This Week — Best Monthly Gains Since October 2021

Glassnode, an on-chain analytics company, warned that the situation was still uncertain due to markets still reflecting a bearish mood after months in a downtrend.

“Both Bitcoins and Ethereum saw a rebound in their prices this week, off the back of extremely undersold conditions and spurred by risk-on emotion following the July FOMC meeting,” they stated in the latest Glassnode weekly newsletter, The Week on-Chain.

“Under the surface, however, on-chain transactional demands remain lacklustre at best. This rally has yet to see a convincing follow up in observable demand activities.”

Glassnode stated that the on-chain data was still only a part of the picture. That attention should now shift to whether or not the emerging signs of change can be sustained.

com. You should do your research before making any investment or trading decision.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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