Bitcoin (BTC) saw renewed volatility after Wall Street’s final open in July, as highs north of $24,000 continued to represent solid resistance.
Resistance hits BTC at the $24,000 level
Data from Cointelegraph Markets Pro and TradingView reflected the continued struggle of the bulls, as the BTC/USD pair teetered around the $24,000 mark on July 29.
The pair had attempted to match the week’s local high of $24,450, which ultimately failed to materialize as the resurgent US dollar put pressure on crypto despite gains in US stocks.
The US Dollar Index (DXY) continued to rise during Wall Street trading, breaking above 106 after falling to its lowest levels since July 5.
Record eurozone inflation added to the mix of macroeconomic factors on the day, while the monthly close remained a guessing game for Bitcoin analysts.
On the short term, popular Crypto trader Tony took note of what he called a “classic bearish setup” around the high, which remained Bitcoin’s best since mid-June.
A classic short setup with a clear invalidation point ..
Did anyone catch it pic.twitter.com/DTW2rAYM9K
— Crypto Tony (@CryptoTony__) July 29, 2022
However, other key levels remained apt to act as support in the event of a deeper pullback. These included Bitcoin’s 200-week moving average around $22,800 and realized price at $21,820.
#bitcoin back above realized price, light blue, I like it pic.twitter.com/Rr0r4boljC
— PlanB (@100trillionUSD) July 29, 2022
As for the former, however, Bitcoin’s weekly candlestick would need to close to confirm a change in resistance/support, he pointed that day the trader and analyst Rekt Capital.
The weekly close would also act as the monthly close, making July 31 a key psychological day of reckoning after June’s 40% crash, Bitcoin’s worst monthly performance since September 2011.as confirmed by figures from on-chain data resource Coinglass.
180 days until “full recovery”?
Summarizing the year 2022 for crypto markets, a new report from on-chain analytics firm Glassnode and marketplace site CoinMarketCap hinted at just how long the road to recovery might be.
Following the chaos, which began with the collapse of Terra (LUNA) – now renamed Terra Classic (LUNC) – in May, a “reset” has taken place across crypto assets, according to the report.
Bitcoin and ether (ETH) alone are down 75% from their all-time highs in less than a year, so it may not be until 2023 that the trend will change for good.
“The market has only been in this position since mid-June, and previous bear cycles have taken an average of 180 days before a full-scale recovery occurred.”was read.
Glassnode and CoinMarketCap, in particular, highlighted the plight of miners who, as Cointelegraph reported, faced continued profit margin cuts during Q2 and more recently. The report concluded:
“Overall, 2022 so far has been a major reset of market expectations, far-reaching deleveraging and, ideally, the start of a new set of foundations, upon which even taller structures can be built.”
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