Bitcoin is trying its best to keep sentiments and enthusiasm in the market positive. It has ended another week on a low-high note at the $23,000 mark.
Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, and Jamie Coutts, a senior market structure analyst, in a recent report, highlighted that Bitcoin has been base building similar to the one seen near the $5,000 mark in 2018-19. The experts expect recovery to decouple from stocks and behave more like US Treasury bonds or gold.
The slump in the overall global crypto market hasn’t dented investors’ appetite. Messari and Dove Metrics, a crypto analytics firm, stated that the crypto space raised $30.3 billion in funds in 2022, so far, surpassing the total amount raised in 2021. However, the challenge remains between a smooth recovery and the bears. On August 4, the bears pulled the price below the 20-day exponential moving average (EMA), but could not sustain the lower levels. This shows that the bulls are aggressively defending the level.
There is also a minor advantage for the buyers. The bulls will try to push Bitcoin to the overhead resistance at $24,668 if the price rises of the 20-day EMA. This is considered an important level because if the price breaks above the said resistance, BTC could pick up momentum and rally toward $28,000 and onto the $32,000 level. But if the price slips from the current level and breaks below the 20-day EMA, the bears would continue to sell on minor rallies. The drop would be to $21,388.
Meanwhile, Ethereum is riding high on $1,720. It has gained 4.17%. The new week will likely see a rally to $2,000 and later to the crucial $2,200.