The price of bitcoin (BTC) attempted to reach $24,000 on July 20 after a night of solid gains that put the bulls in command.
violated parables
Data from Cointelegraph Markets Pro and TradingView tracked the BTC/USD pair as it broke above $23,800, its highest level since June 13..
Contrary to expectations, the cryptocurrency staged a recovery beyond an intra-hourly “feint” as risky assets benefited from diminishing US dollar strength.
The inverse correlation between the US Dollar Index (DXY) and bitcoin remained in the spotlight on the day as the greenback came off its twenty-year highs at the end of the previous week.
“The dollar is taking a good hit from the bears today,” said popular Crypto trader Tony to his Twitter followers as the breakup took shape:
“It’s a good sign for bitcoin as things cool down for DXY.”
$DXY has broken the Parabolic Trend (Parabola) that has been formed since Jan 7, 2021.
It’s time to pay attention. pic.twitter.com/xg344NrOCw
— wolf (@ImNotTheWolf) July 19, 2022
The DXY has broken the parabolic (parabola) trend that has formed since January 7, 2021. It is time to pay attention. pic.twitter.com/xg344NrOCw
For his part, his analysis partner Wolf referred to the breaking of a “parabolic trend” in DXY throughout 2022. At the same time, according to popular trader Jibon’s analysis, the BTC/USD pair 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
The bitcoin parabolic run has ended as expected
Those “expectations” they referred to a strategy that saw the BTC/USD pair rally to $40,000 before another bearish phase introduced a new macro bottom.
Major trend lines see flash test
Going back to the current price action, significance came in the form of crucial trend lines being broken.
Among them were the 200-week moving average (WMA) at $22,800 and the realized price of bitcoin at $21,934 as of July 19.as confirmed by data from on-chain analytics firm Glassnode.
Both are classic elements in bitcoin bear markets, with the BTC/USD pair often falling below, but holding levels as basic support..
The focus is therefore on the weekly close, which would confirm a breakout of the 200 WMA.
$BTC 1D
Hard to believe but #bitcoin has broken the 50 DMA, 200 WMA (confirms week close), major upward resistance, & Bear Flag all in the same day.
Shorting a breakout isn’t the best idea. I TP’d a bit early on longs but will reenter on a retest of support.#cryptocurrency pic.twitter.com/BDwf0f67GK
— Roman (@Roman_Trading) July 19, 2022
Bitcoin 1-Day Price Action: It’s hard to believe, but bitcoin has broken the 50 DMA, the 200 WMA (confirm weekly close), the major bullish resistance, and the bear flag all in the same day. Shorting a breakout is not the best idea. I’m a little early on the longs, but I’ll be back in when support is tested again.pic.twitter.com/BDwf0f67GK
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