The mood across the cryptocurrency ecosystem is noticeably brighter on July 22 after a week of gains helped traders put the events of the past two months behind them and look toward a positive future.
Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin (BTC) has been oscillating around support at $23,000 over the past couple of days and continues to hold slightly above its 200-week moving average (MA), which has been a reliable indicator of bear market bottoms in the past.
As the debate about the market’s direction continues to rage, here are the important levels to watch heading into the weekend, according to analysts.
Bitcoin needs weekly close above $22,800
The significance of Bitcoin trading above its 200-week MA was noted by independent market analyst Michaël van de Poppe, who posted the following chart highlighting the major support and resistance zones:
According to van de Poppe, Bitcoin is “facing crucial resistance again” at $23,500, and what happens next will determine if its price heads higher or pulls back to support at $21,500. He explained:
“If that breaks at $23.8K, I’m assuming we’ll continue and then $28K is on the tables, but we also have a clear breakout above the 200-Week MA confirmed.”
The importance of BTC holding above the 200-week MA was further addressed by market analyst Rekt Capital, who highlighted the need for Bitcoin to see a weekly close above $22,800:
#BTC is see-sawing around the 200-week MA all week
The most important thing will be the confirmation relative to the 200-week MA in the form of a Weekly Candle Close
The 200-week MA represents the price point of $22800$BTC #Crypto #Bitcoin
— Rekt Capital (@rektcapital) July 22, 2022
Anticipating a big move
The recent price action is a sign that “a big move for #BTC is going to happen soon,” according to crypto trader and pseudonymous Twitter user CryptoGodJohn, who provided the following chart outlining two possible paths Bitcoin could take:
CryptoGodJohn said:
“Break above and hold $24,200. I think we squeeze to $27K–$28K fairly quickly. If we start accepting back into the range, I am looking for a flush down to $20K. Pretty easy invalidation on both, stay safe.”
Related: Pro Bitcoin traders are uncomfortable with bullish positions
The possibility of a move in either direction was also noted by the Twitter user Mayne,…
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