Bitcoin must close above $21.9K to avoid fresh BTC price crash — trader

Covered:

  • BTC Strength
  • Ethereum, Cardano lead altcoins as ETH outflows rise

BTC Strength

Bitcoin (BTC) found strength at $22,000 into July 24 with bulls still aiming for a solid green weekly close.

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

Classic levels for end-of-week price focus

Data from TradingView showed BTC/USD halting a weekend drop at $21,900 to return towards the $23,000 on the day.

The pair held a trading range closely focused on key long-term trendlines, which analysts had previously described as essential to reclaim.

These included the 50-day and 200-week moving averages (MAs), the latter particularly important as support during bear markets but which had acted as resistance since May.

“Bullish that we perfectly held the 13d ema + horizontal 21.9k,” popular Twitter trading account CryptoMellany argued in part of her latest update on the day.

“I think we’ll hang around 22.5k for today’s weekly close, new week starting with action down to 21-21.6k and then up for the rest of the week, forming a bull flag.”

The 50-day and 200-week MAs stood at $22,370 and $22,690, respectively, at the time of writing, with spot price at $22,670.

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BTC/USD 1-day candle chart (Bitstamp) with 50, 200-day moving average. Source: TradingView

Continuing, fellow trader and analyst Jibon described the upcoming weekly close as “very very important.” An accompanying chart singled out $21,944 and $22,401 as the lines in the sand for a “bad” or “good” close.

Earlier in the week, Jibon had warned that such a “bad” result could be the start of a retracement to new macro lows for Bitcoin — as low as $12,000 — which continued strength could fuel a relief rally as high as $40,000.

If it were to close at current levels, BTC/USD would seal its highest levels since mid-June.

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

Ethereum, Cardano lead altcoins as ETH outflows rise

On altcoins, Ether (ETH) and Cardano (ADA) were the standout weekend performers as both rejected lower levels.

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ETH/USD 1-hour candle chart (Binance). Source: TradingView

ETH/USD returned to $1,600 on the day, while ADA/USD likewise looked to challenge its $0.548 peak from during the week, this marking its best performance since June 12.

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ADA/USD 1-day candle chart (Binance). Source: TradingView

Analyzing the current environment, traders noted the significance of Ethereum’s 2018 high of $1,530, a level which became long-term resistance and which returned as resistance again in June.

As price action strengthened, meanwhile, outflows of ETH from major exchanges intensified. On July 22, according to data from on-chain analytics firm CryptoQuant, those flows totaled 1.87 million coins.

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ETH outflows chart. Source: CryptoQuant

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

*This article originally appeared in Cointelegraph.