Bitcoin (BTC) aimed for $ 24,000 on July 20 after a night of solid gains put bulls in the driver’s seat.
Data from Cointelegraph Markets Pro and TradingView followed BTC / USD when they broke $ 23,800, the highest level since June 13.
Unexpectedly, crypto staged a recovery beyond an intra-time “fake-out” as risk assets profited from falling US dollar strength.
The inverse correlation between the US dollar index (DXY) and Bitcoin remained the center of the day, with the dollar coming from twenty-year highs at the end of the week before.
“The dollar is getting a good hit today from the Bears,” said popular trader Crypto Tony told Twitter followers when the outbreak took shape:
“Good sign for Bitcoin as things are cooling 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
– ulv (@ImNotTheWolf) July 19, 2022
Co-analyst Wolf, meanwhile, saw the collapse of a “parabolic trend” in place on DXY through 2022. At the same time, according to analysis by popular trader Jibon, BTC / USD had ended its parabolic run to macro-low levels.
– Trader_J (@Trader_Jibon) July 20, 2022
These “expectations” referred to a strategy that estimates BTC / USD to rise to $ 40,000 before another bearish phase enters a fresh macro bottom.
Big trend lines see a sudden test
Back to the current price action, meanwhile, came the significance in the form of decisive trend lines being broken.
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Among them was the 200-week moving average (WMA) of $ 22,800 and Bitcoins realized price of $ 21,934 as of July 19, data from the chain analysis company Glassnode confirmed.
Attention was thus focused on the weekly closing, which would confirm an outbreak of 200 WMA.
$ BTC 1D
Hard to believe but #bitcoin has broken 50 DMA, 200 WMA (confirms weekend), great resistance upwards and Bear Flag all on the same day.
– Roman (@Roman_Trading) July 19, 2022
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