Bitcoin Holds 5 Weeks As Trader Suggests ‘Parabolic’ Bear Trend Is Over
Bitcoin (BTC) took aim at $24,000 on July 20 after a night of solid gains put bulls in the driver’s seat.
Parables are broken
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it breached $23,800, the highest level since June 13.
Against expectations, crypto staged a recovery beyond an intra-hour “fake-out” as risk assets benefited from falling US dollar strength.
The inverse correlation between the US Dollar Index (DXY) and Bitcoin remained the centerpiece of the day, with the dollar coming off twenty-year highs at the end of the previous week.
“The dollar is taking a good beating today from the bears,” popular trader Crypto Tony told Twitter followers as the outbreak took shape.
“Good Sign for Bitcoin as Things Cool for DXY.”
$DXY has broken the parabolic trend (Parabola) that has been formed since January 7, 2021.
It’s time to pay attention. pic.twitter.com/xg344NrOCw
— wolf (@ImNotTheWolf) July 19, 2022
Fellow analyst Wolf, meanwhile, saw the breakdown of a “parabolic trend” in place on the DXY throughout 2022. At the same time, according to analysis by popular trader Jibon, BTC/USD had ended its parabolic run to macro lows.
#Bitcoin Parabolic Run is over as expected pic.twitter.com/1uuu0AfKKD
— Trader_J (@Trader_Jibon) July 20, 2022
These “expectations” referred to a strategy that sees BTC/USD rising to $40,000 before a new bearish phase sets in a fresh macro bottom.
Major trend lines see a sudden test
Back to current price action, meanwhile, significance came in the form of crucial trend lines being broken.
Related: 100X Bitcoin energy consumption would mean “absurd” $ 20M BTC price – developer
Among them were the 200-week moving average (WMA) of $22,800 and Bitcoin’s realized price of $21,934 as of July 19, confirmed data from chain analysis firm Glassnode.
Both are classic fixtures in Bitcoin bear markets, with BTC/USD typically trading below while preserving levels as fundamental support.
Attention thus focused on the weekly close, which would confirm a breakout from the 200 WMA.
$BTC 1D
Hard to believe though #bitcoin has broken the 50 DMA, 200 WMA (confirms week end), major resistance to the upside and Bear Flag all in the same day.
Taking a break is not the best idea. I TP’d a little early on the longs, but will re-enter on a retest of support.#cryptocurrency pic.twitter.com/BDwf0f67GK
— Roman (@Roman_Trading) July 19, 2022
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