$24,000 BTC price refuses to flip to support while the weekly close remains shrouded in uncertainty.
Bitcoin (BTC) saw fresh volatility after July's final Wall Street open as highs north of $24,000 remained solid resistance.
Resistance strikes BTC at $24,000
Data from Cointelegraph Markets Pro and TradingView reflected bulls' continuing struggle as BTC/USD lurched around the $24,000 mark on July 29.
The pair had attempted to match the week's local top of $24,450, this ultimately failing to materialize as a resurgent U.S. dollar pressured crypto despite the gains of U.S. stocks .
The
U.S. dollar index (DXY) continued higher during the Wall Street
trading, passing 106 after falling to its lowest levels since July 5.
Record eurozone inflation added to the mix of macro triggers on the day, while the monthly close remained a guessing game for Bitcoin analysts.
On
short timeframes, popular trader Crypto Tony eyed what he called a
"classic short setup" around the high, which remained Bitcoin's best
since mid-June.
Nonetheless, other key levels remained apt to act as support in the
event of a deeper drawdown. These included Bitcoin's 200-week moving
average at around $22,800 and realized price at $21,820.
In terms of the former, however, Bitcoin's weekly candle would need
to close for confirmation of a resistance/support flip, fellow trader
and analyst Rekt Capital noted on the day.
The
weekly close would also act as the monthly close, making July 31 a key
psychological day of reckoning after June's 40% drawdown — Bitcoin's
worst monthly performance since September 2011, figures from on-chain data resource Coinglass confirmed.
180 days until "full recovery"?
Summing
up 2022 for crypto markets so far, meanwhile, a new report from
on-chain analytics firm Glassnode and markets site CoinMarketCap hinted at how long the road to recovery could be.
Related: Bitcoin bear market over, metric hints as BTC exchange balances hit 4-year low
After the mayhem, which began with the Terra (LUNA) — now renamed Terra Classic (LUNC) — collapse in May, a "resetting" had occurred throughout crypto assets, the report argued.
With Bitcoin and Ether (ETH) alone down 75% from all-time highs in under a year, it may not be until 2023 that the trend can change definitively.
"The
market has only been in this position since mid-June, and previous bear
cycles have taken an average of 180-days before full scale recovery was
in effect," it read.
Glassnode and CoinMarketCap, in particular, highlighted the plight of miners who, as Cointelegraph reported, faced ongoing profit margin squeezes over Q2 and more recently. The report concluded:
"All
in all, 2022 has thus far been a major resetting of market
expectations, a wide ranging de-leveraging, and ideally, the start of a
new set of foundations, upon which even taller structures may be built,"
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.
source link : https://cointelegraph.com/news/bitcoin-price-rejects-at-24k-as-classic-short-setup-spoils-bulls-fun
