Bitcoin (BTC) faked a breakout to fresh six-week highs through July 31 as the showdown loomed for both weekly and monthly closes.
“Bart Simpson” greets traders at the BTC monthly close
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair canceled all of its gains since the beginning of the weekend, falling from $24,670 to $23,555 within hours.
The resulting chart structure was all too familiar to long-term market participants, creating a “Bart Simpson” shape on hourly time frames.
Nonetheless, liquidations remained manageable, totaling $150 million in the 24 hours to time of writing, according to data from analytics resource Coinglass, down from previous days.
For popular trader and analyst Rekt Capital, there was now reason to believe that the upcoming weekly candle close would confirm that Bitcoin had re-established a key trend line as support after weeks of failure.
looks like #BTC has successfully retested the 200-week MA as support$BTC #crypto #bitcoin pic.twitter.com/yg75xrxXQB
— Rekt Capital (@rektcapital) July 30, 2022
However, looking ahead, not everyone was convinced that the current market strength had much room to continue.
In one of several Twitter posts over the weekend, Material Scientist, creator of on-chain analytics resource Material Indicators, noted that funding rates on derivatives platforms are turning increasingly positive, indicating too much consensus. strong belief that prices could rise out of control.
“Negative funding has almost fully reset, just like it was in late March. We might even see positive funding on some alternatives soon,” wrote.
“I think there is one final breakout in the shaded area before the bear rally dies out.”
Nonetheless, BTC/USD was still on track to post monthly gains of roughly 19% for July, which is in stark contrast to any other month of the year thus far.
According to Coinglass data, July returns were even poised to be Bitcoin’s best since 2021 all-time highs.
One of the “biggest bull markets” could now await Bitcoin
Other perspectives paid little attention to the prospect of a further correction in the short term.
Looking at the potential performance in the second half of 2022, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, left little doubt as to how Bitcoin in particular would fare.
Indications that the Fed would address rate hikes “meeting by meeting,” according to Chairman Jerome Powell this week, “may set the stage for #Bitcoin to resume its trend of outperforming most assets,” plot on social networks.
“July marked the biggest discount in Bitcoin history to its 100 and 200-week moving averages, with implications for its recovery,” he added of the 200-week trendline.
“I see the risk versus reward skewing favorably for one of the biggest bull markets in history.”
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