Bitcoin price rejects at $24K as ‘classic short setup’ spoils bulls’ fun

Bitcoin (BTC), which saw volatility following July’s Wall Street close, reached highs of $24,000 but remained strong resistance.

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

BTC resists at $24,000

Data from TradingView and Cointelegraph Markets Pro reflected the ongoing struggle of bulls as BTC/USD hovered around $24,000 on July 29.

The pair tried to match the weekly top of $24,450 but this failed to materialize due to a rising U.S. dollar and crypto pressure despite gains in U.S stocks

After falling to its lowest level since July 5, the U.S. Dollar index (DXY), continued rising during Wall Street trading and passed 106.

U.S. dollar index (DXY), 1-hour candle chart Source: TradingView

The record eurozone inflation was added to the mix, while the monthly close remained a guessing sport for Bitcoin analysts.

Crypto Tony, a popular trader, saw a “classic short setup” at the high. This was Bitcoin’s best since June.

$BTC / $USD – Update A classic short setup with a clear invalidation point .. Did anyone catch it pic.twitter.com/DTW2rAYM9K
— July 29, 2022, Crypto Tony (@CryptoTony__).

However, there were still key levels that could provide support in case of a deeper drawdown. These were Bitcoin’s 200-week moving mean at around $22,800, and its realized price of $21,820.

#bitcoin back above realized price, light blue, I like it pic.twitter.com/Rr0r4boljC
— PlanB (@100trillionUSD), July 29, 2022

Rekt Capital, a fellow analyst and trader, noted that Bitcoin’s weekly candle must close to confirm the support/resistance flip.

The weekly close would also serve as the monthly closing, making July 31 a psychological day of reckoning following June’s 40% drawdown. These figures are confirmed by Coinglass, an on-chain data resource.

Screenshot of the Bitcoin monthly returns chart Source: Coinglass

180 days to “full recovery?”

A new report by Glassnode, an on-chain analytics firm, and CoinMarketCap, which outlines the progress of crypto markets in 2022, suggested how long it could take to recover.

Related: Bitcoin bear Market over, metric hints at 4-year low in BTC exchange balances

The report stated that after the chaos, which started with Terra (LUNA), now renamed Terra Classic, a “resetting” had taken place in all crypto assets.

Bitcoin and Ether (ETH), which have fallen 75% in less than a year from their all-time highs, may not change until 2023.

It stated that “The market is only in this position since mid June, and previous bear cycles took an average of 180 days before full-scale recovery was in effect.”

Glassnode, CoinMarketCap and others highlighted the dire situation of miners, who, according to Cointelegraph, have been suffering from ongoing profit margin cuts over Q2 as well as more recent times. The report concluded with these words:

“All in all 2022 has been a significant resetting market expectations, an extensive de-leveraging and, ideally, the beginning of a new set foundations upon which taller structures might be built.” You should do your research before making any investment or trading decision.
https://cointelegraph.com/news/bitcoin-price-rejects-at-24k-as-classic-short-setup-spoils-bulls-fun