Slowly, bitcoin is setting a higher price floor.
A sustained recovery could be on the cards this weekend.
Bitcoin (BTC) investors, traders, analysts and enthusiasts have been waiting for a breakout for months that would mark the arrival of a new bull market for the cryptocurrency. And the current structure indicates a move in that direction, at least in the short term.
Since mid-June, the price movement has been in a range. at its lowest and highest points between $17,600 and $24,600, respectively. But a structure built around those moves suggests a bullish price consolidation.
In the words of the analyst and trader known on Twitter as @TheCrowtrades, basically Each time the lows (potential support) are set higher, and is also moving higher (resistance potentially indicating a bullish breakout), as noted by the analyst. via twitter,
In fact, in each downtrend during the past weeks, the inflection point has been higher than the previous ones. For example, BTC hit 17,600 as its lowest point in mid-June. Then, at the end of that month, it rebounded after touching $18,600.,
In mid-July, a bearish trend returned that did not exceed 18,900, while on July 26, bitcoin rebounded after touching $20,700. The latter is the cryptocurrency’s lowest point for three weeks. At the time of writing this article, BTC is trading above $23,000.
As the above graph, taken from TradingView site, shows, Looks like BTC is climbing a ladder of sorts with higher and higher floors, For @TheCrowtrades, that’s a positive sign. And as long as he sees this pattern, he will remain exclusively bullish.
End of bear market?
for weeks, The big question among analysts has been: are we reaching the end of bear market? After all, this downside is maintained throughout the year 2022 in which bitcoin has lost more than half of its value.
These positive signs of behavior shown by the cryptocurrency in recent weeks seem to coincide with the recent recovery above the 200-week SMA. This metric, which BTC has historically been up, I could save the keys for a bigger refundWhich is already more optimism among traders.
As we reported this Saturday at Cryptonoticious, analysts like Scott Melker are looking at that metric precisely for the end of this weekend. If BTC stays above the level that is currently hovering near the $22,800 level, it could consider a sharp breakout.