A four-day Bitcoin (BTC) rally from Wednesday to Saturday reflected a shift in investor sentiment. Unable to revisit $22,000 since July 8, a rising start to the week pushed BTC up to $22,000 to run the bulls at $25,000. Technical indicators are flashing green. EMAs mark the beginning of an uptrend formation. Here are the latest changes in Bitcoin’s price…
Bitcoin climbs above $22,000
On Sunday, Bitcoin (BTC) fell 1.92 percent. Reversing a 1.79 percent gain compared to Saturday, BTC closed the day at $20,793. A modest one-week loss of 0.26% came as the four-day streak came to an end, despite market concern over Fed monetary policy. However, failing to reach $22,000 remained a bearish BTC indicator until this morning.
Having received support from the NASDAQ 100 last week, the NASDAQ 100 remains the key driver today. This morning, the NASDAQ 100 Mini is up 95 points to provide early support. Crucially, the morning gain suggested that investors’ unease over Fed monetary policy and the US economic outlook may have eased.
BTC’s return to $22,000 relieves the crypto market
BTC remains the barometer of the broader crypto market. This morning, BTC returned to $22,000 for the first time since July 8th. Before July 8, BTC was last at $22,000 on June 16. A pullback from the June sales will signal a return for BTC to $30,000 and the bulls need to break the $25,000 resistance on the way.
In mid-June, BTC dropped below $22,000 for seven consecutive days, reflecting a marked shift in investor sentiment. If BTC holds $22,000 today and combines holding tomorrow, we expect a similar trend to occur on the bullish side. For the broader crypto market, BTC’s return to $22,000 is also good news. As reviewed earlier this morning, technical indicators for a large number of cryptos are bullish, indicating a shift in investor sentiment.
A momentum-driven recovery should push the total crypto market cap to $1 trillion, another milestone for investors. This morning, the total crypto market cap was $986 billion, up $55 billion in the early hours.
Next levels for BTC
A bullish start to the day saw BTC surge from an early low of $20,761 to a high of $22,308. Looking at the EMAs and the 4-hour candlestick chart (below), this was a bullish signal, according to analyst Bob Mason. This morning, Bitcoin broke out of the 200-day EMA, currently at $21,823. The bullish cross of the 50-day EMA over the 100-day EMA supported the early breakout. For the rest of the day, a hold above the 200-day EMA will support a run of $25,000.
Looking at the trends, the June high of $22,377 and $25,000, the July high of $31,956, can be targeted. At $31,200, BTC should have a clear run to the May high of $40.004. For the bears, the $17,601 low of June 18 will be the price target. A drop to $18,919 last week’s low will likely test trader resistance.
