Just when the broader crypto market was preparing for a bull run, Bitcoin slipped to the $22,000 range bringing its high volatility to the fore. BTC’s price has been oscillating around the $23,000 support area over the past couple of days. It continues to hold slightly above its 200-week moving average (MA). This has been a reliable indicator of bear market bottoms in the past.
Bitcoin’s Friday price was a 14% increase. Currently, it’s trading at $22,875 having lost 0.28% in the last 24 hours. Ethereum is changing hands at $1,572, it gained 0.78%. The top two cryptocurrencies have been moving upwards since it broke out from the descending resistance line on July 18. However, Bitcoin is yet to initiate a significant gain as it still hovers above the resistance line.
The latest data suggests that the upward move is likely to continue. The much-loved cryptocurrency has already breached an ascending parallel channel. It’s in the process of confirming it as support. Moreover, Bitcoin is in the process of validating the $22,600 horizontal area as support. There has been a noted slowdown in bullish momentum, which coincides with an increase in sell orders. Analysts point out short time frames, wherein there are over $70 million in sell orders for Bitcoin from $23,000 – $24,000. Analysts explained that when funding rates are positive, investors view it as a bullish nature. And when funding rates are negative, investors regard it as bearish. Bitcoin funding rates have been positive every day in July so far.
Meanwhile, macroeconomic conditions are not to be overlooked. The Federal Open Market Committee (FOMC) interest rate decision is to look out for on Wednesday. Rates are expected to increase 75 basis points.