Thanks to macro triggers, traders support fireworks in July, despite the fact BTC price action is on track for a historic monthly close below the 200-week moving average.
In the new week, Bitcoin (BTC) starts above $20,000 but heading for a new bearish record as a key support level remains out of reach.
After a quiet weekend scattered by a brief spike to near $22,000, BTC/USD is back near the Friday closing price of CME futures markets.
A “round trip” of Wall Street trading sessions, thus permits traders to pick up where they left off at the end of last week’s final but what could lie in store in the coming days?
A familiar cocktail of macro pressures and ongoing bearish tendencies make the current climate far from ideal for the average holder. In spite of seeing some relief last week, crypto markets continue to bear the brunt of cold feet, which have defined macro sentiment increasingly throughout 2022.
July is expected to provide BTC price “catalysts”
To describe the general sense of resignation among Bitcoin traders this week apathetic is an appropriate word.
This weekend spared the average holder undesirable surprises. Data from Cointelegraph Markets Pro and TradingView shows, the fact remains that BTC/USD is far from where anyone wants it to be — even in a bear market.
Through the key 200-week moving average (WMA) out of reach, there is an expensive little bullish sentiment out there, as shown by the “extreme fear” of the Crypto Fear & Greed Index still firmly in control.
While some sell their BTC in panic, analysts are striving to show that so far, there is nothing unusual about the scope of the Bitcoin bear market.
Firm Glassnode called it “A Bear of Historic Proportions,” and called for calm on sub-$20,000 BTC.
Investors’ reactions to price changes single out the current climate, not Bitcoin itself.
In spite of losses remaining within historical standards, sales of BTC at a loss have eclipsed previous records.
“The recent price collapse through to the $20k region was punctuated with the largest daily USD denominated realized loss in history,” Glassnode claimed.
Things are either looking worrying or “interesting” for Bitcoin depending on one’s perspective as only three days left before the June monthly close.
With the bear market in full swing, BTC/USD remains below, which is the key trendline that has supported it during previous macro lows. The 200-week moving average (WMA), which has never reduced in value, presently sits at $22,430.
In previous bear markets, as Cointelegraph reported, Bitcoin has retained the 200WMA as support while wicking below it to put in floor prices.
It was only recently that altcoins were suffering even more than Bitcoin due to disturbance from multiple most important projects including Terra and Celsius.
Now, that the tables are turning — Bitcoin dominance has reversed after frustrating this year, leading to suggestions that altcoins could be the place to be in the short term.
Popular Twitter account BTCfuel summarized “Bitcoin dominance is moving down strongly. The advantage lies with altcoins right now”.
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