A crypto renaissance sees Bitcoin price challenge major resistance and long-term trendlines during a much-needed show of strength.
Bitcoin (BTC) took aim at $24,000 on July 20 after an evening of solid gains put bulls within the driving seat.
Parabolas violated
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD because it breached $23,800, its highest levels since June 13.
Against expectations, crypto staged a recovery beyond an intra-hour “fake-out” as risk assets benefitted from declining U.S. dollar strength.
The inverse correlation between the U.S. dollar index (DXY) and Bitcoin remained center stage on the day, with the greenback coming off twenty-year highs at the top of the week prior.
“The Dollar is taking a pleasant hit today from the bears,” popular trader Crypto Tony told Twitter followers because the breakout took shape.
“Good sign for Bitcoin as things cool off for the 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
Fellow analyst Wolf meanwhile eyed the breakdown of a “parabolic trend” in situ on DXY throughout 2022. At the identical time, as per analysis from 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
Those “expectations” mentioned a method forecasting BTC/USD rising to $40,000 before another bearish phase puts in a very fresh macro bottom.
Related topic:
Major trendlines see a sudden test
Returning to current price action, meanwhile, significance came within the sort of crucial trendlines being broken.
Among them were the 200-week moving average (WMA) at $22,800 and Bitcoin’s realized price at $21,934 as of July 19, data from on-chain analytics firm Glassnode confirmed.
Both are classic fixtures in Bitcoin bear markets, with BTC/USD usually wicking below while preserving the degree as basic support.
Attention thus focused on the weekly close, which might confirm a breakout from 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
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