“Bitcoin may rally if we close above this rate”

Last Updated: 8 August 2022

The bitcoin price is currently at $23,300 and appears to be holding strong above the 100-hour moving average. On the hourly chart, bitcoin even managed to break out above a bearish trend line, making it look optimistic for the price in the short term at least.

Strong support at $22,400 to $22,500

The major support zone for bitcoin on the hourly chart currently appears to be around $22,400 to $22,500, a point on the chart which we are trading well above at the time of writing. So much so that we are now back a few hundred dollars above $23,000 and have the 100-hour moving average below us as support.

In addition, an important bearish trend line was broken on the hourly chart. The next major resistance now appears to be at $23,500. A close above that level could mark the start of a new rise. If successful, NewsBTC’s analysts even suggest that a rise to USD 24,500 is in store.

All in all, it seems that the bulls are slowly coming into control and that the bears have had their best time in 2022. That would mean that the bottom of $17,600 in June has also been the absolute bottom for this bear market. Small disclaimer: of course, everything depends on the further development of macroeconomic conditions.

Is there a chance of falls?

Of course, there is always a chance of falls. Certainly, nothing can be ruled out in this market, and the most unlikely scenarios still come true quite regularly. That is why it is never wise to risk your entire portfolio on the basis of technical analysis. It is a nice tool to play with; a nice tool, but no more than that.

If bitcoin fails to reach $23,500 and the bulls do not have the energy to push us past that level, it is quite possible that new declines await us. The first support, in that case, lies at $23,100. At the moment, we are still trading well above that at $23,300.

If we fail to hold that level, $22,750 looks to be the next key point on the chart. A close below that level could take us to $22,500, and if the bulls do not hold there too, the $22,000 will be in danger. One positive development is that the MACD is regaining momentum in the bullish zone.

Author

  • Ivan came across the topic of cryptocurrencies in early 2016 and, as an author and enthusiast, has been intensively involved with the topics of cryptocurrencies, blockchain and STOs ever since.

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