Bitcoin bulls defend $23,000 amid warning of ‘alive and well’ bear market rally

Bitcoin (BTC) tested $23,000 as support on August 1st Wall Street with a focus on the major moving averages.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

The 200-week moving average is getting a lot of attention

It follows data from Cointelegraph Markets Pro and TradingView BTC/USD as bulls and bears battle for control amid a tight trading range.

Inspired by its highest weekly close since mid-June, bitcoin the day before, its monthly candle also made the biggest gains since before last year’s all-time highs of $69,000.

However, among analysts and traders, the market’s ability to stay higher for several more candles was important.

Although important trendlines such as the 200-week moving average (MA) and the achieved price have recovered, Bitcoin will not be out of danger until it starts producing full weekly candles without retesting these levels.

“The Bear Market Rally is still alive and well,” Material Indicators for an on-chain analytics resource explained in a day.

“To call anything else would require confirmations of valid breakouts above the major moving averages. 200 weeks and 50 months are the first things to consider in BTC, but only if we have full candles above the line. Nullifies the wick below.”

BTC/USD 1 month candlestick chart (Bitstamp) with 50 month moving average. Source: TradingView

As such, $22,880 and $21,965 were base lines to hold for the bulls and increasingly close to the spot.

Fellow trader and analyst Rekt Capital nonetheless predicted that Bitcoin will naturally attempt to retest the 200-week moving average as short-term support.

Commenting on the strength of the price, however, is pointed That the recovery of the 200-week moving average was the first such event after an “extended downtrend” since the COVID-19 crash in March 2020.

“Bitcoin may struggle to break above $24,000, but the weekly candle finally closed above the 200-week moving average and technical sentiment could improve significantly,” Summarization In the additional comment.

Activity on the series “Bad at best”

With the US stock markets stable today, Bitcoin and altcoins have little to no overall pressure affecting price action.

Related: Best Monthly Gains Since October 2021 – 5 Things to Know in Bitcoin This Week

However, the situation remained somewhat uncertain, researchers at cross-chain analytics firm Glassnode warned, thanks to markets still reflecting bearish mood after months of bearishness.

They concluded in the latest edition of Glassnode’s weekly newsletter, The Week on a Series.

“However, below the surface, demand for cross-chain transactions remains lackluster at best, and this uptick has not yet seen a convincing follow-up in observed demand activity.”

Glassnode added that the on-chain data is still “only part of the picture”, and attention should now also be on whether the nascent signs of change can persist.

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