Bullish caution – The price of Bitcoin (BTC) temporarily lost $23,000, a drop that reminds us that the increases of recent days do not mean that the bulls have returned to the markets for a long time.
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Bitcoin Price Fake Breakout
The price of bitcoin drops to $22,350 on Bitfinex today, July 21, 2022. It manages to rally above $23,000, however. The cryptocurrency is trading at $23,162 at the time of writing. Its price is currently recording a daily loss of 1.88%.
The temporary loss of $23,000 has some traders worried about the real nature of the Bitcoin price increases over the past few days.
As the price of the cryptocurrency rose to $22,550, trader Rekt Capital believed that “the recent rally looks like a fake breakout above the 200-week moving average.
He reminds that Bitcoin must close the week above $22,800, to “confirm a break” of this average, which plays a major bullish support role.
Retest before further increases
However, not all traders have a pessimistic reading of today’s decline. Trader Michaël van de Poppe shared a 1-hour chart of Bitcoin price, while highlighting the “ good test around $22,300, where buyers seem to be in a huddle for the time being.
Michaël van de Poppe believes that if Bitcoin manages on this time scale to have a higher low at $22,600the bullish momentum should continue.
BTC price: the bullish threshold
However, in the event of declines in the coming days, Crypto trader Tony sets $21,700 as the level to defend.
On the 1-hour Bitcoin price chart shared by the trader, this $21,700 corresponds to a former very short-term resistance line, which the bulls managed to break and turn into support, after successfully defending this level, facing two tests.
The upward trend in the very short term, which nevertheless remains to be confirmed, is still fragile. The various tests of the current supports, and in particular the 200-week moving average, could either end in a breakout in favor of a strong comeback of the bears, or in a strengthening of these supports for further increases.
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