Bitcoin (BTC) price action avoids a disappointing monthly close, but large market investors are demanding more proof of fundamental strength.
Bitcoin (BTC) tested the price of $23,000 as support on the Aug. 1 Wall Street open with key moving averages in focus.
Bitcoins 200-week moving average watched carefully
Bitcoin had inspired the bulls with its highest weekly close since mid-June the day prior, with its monthly candle also producing the biggest gains since before last year’s $69,000 all-time highs.
Among many analysts and traders, it was the market’s ability to remain higher for several more candles that was important.
Despite reclaiming important trendlines such as the 200-week moving average (MA) and realized price, Bitcoin will not be out of the woods until it begins producing whole weekly candles without retests of those levels (200 weekly MA). Bitcoin historically has rarely ever traded below the 200 weekly MA as it has typically served as a support line.
The current move up for Bitcoin can be described as a bear market rally as it occurs over the larger downward trendline. Many traders are now looking for the 200 MA line to serve as support for Bitcoin. In the event Bitcoin fails to hold the 200 week MA it may be seen as a bearish indicator and could potentially see bitcoin continue its longer term downtrend.