Bitcoin stays for 5 weeks since the trader suggests that the “parabolic” bear trend is over

Bitcoin stays for 5 weeks since the trader suggests that the “parabolic” bear trend is over

Bitcoin (BTC) aimed for $ 24,000 on July 20 after a night of solid gains put bulls in the driver’s seat.

BTC / USD 1-hour light chart (bit stamp). Source: TradingView

Parabolas are broken

Data from Cointelegraph Markets Pro and TradingView followed BTC / USD when they broke $ 23,800, the highest level since June 13.

Unexpectedly, crypto staged a recovery beyond an intra-time “fake-out” as risk assets profited from falling US dollar strength.

The inverse correlation between the US dollar index (DXY) and Bitcoin remained the center of the day, with the dollar coming from twenty-year highs at the end of the week before.

US Dollar Index (DXY) vs. BTC / USD 1-day slideshow. Source: TradingView

“The dollar is getting a good hit today from the Bears,” said popular trader Crypto Tony told Twitter followers when the outbreak took shape:

“Good sign for Bitcoin as things are cooling for DXY.”

Co-analyst Wolf, meanwhile, saw the collapse of a “parabolic trend” in place on DXY through 2022. At the same time, according to analysis by popular trader Jibon, BTC / USD had ended its parabolic run to macro-low levels.

These “expectations” referred to a strategy that estimates BTC / USD to rise to $ 40,000 before another bearish phase enters a fresh macro bottom.

Big trend lines see a sudden test

Back to the current price action, meanwhile, came the significance in the form of decisive trend lines being broken.

Related: 100X Bitcoin energy usage will mean “absurd” $ 20M BTC price – developer

Among them was the 200-week moving average (WMA) of $ 22,800 and Bitcoins realized price of $ 21,934 as of July 19, data from the chain analysis company Glassnode confirmed.

Bitcoin realized price chart. Source: Glassnode

Both are classic inventory in Bitcoin bear markets, with BTC / USD usually carried below while levels are maintained as basic support.

Attention was thus focused on the weekly closing, which would confirm an outbreak of 200 WMA.

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