Bitcoin holds 5-week high as trader suggests ‘parabolic' bear trend is over
Bitcoin (BTC) took aim at $24,000 on July 20 after a night of solid gains put bulls in the driving seat.
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it breached $23,800, its highest levels since June 13.
Against expectations, crypto staged a recovery beyond an intra-hour “fake-out” as risk assets benefitted from declining U.S. dollar strength.
The inverse correlation between the U.S. dollar index (DXY) and Bitcoin remained center stage on the day, with the greenback coming off twenty-year highs at the end of the week prior.
“The Dollar is taking a nice hit today from the bears,” popular trader Crypto Tony told Twitter followers as the breakout took shape.
$DXY has broken the Parabolic Trend (Parabola) that has been formed since Jan 7, 2021.It's time to pay attention. pic.twitter.com/xg344NrOCw
Fellow analyst Wolf meanwhile eyed the breakdown of a “parabolic trend” in place on DXY throughout 2022. At the same time, as per analysis from popular trader Jibon, BTC/USD had ended its parabolic run to macro lows.
#Bitcoin Parabolic Run is Over As Expected pic.twitter.com/1uuu0AfKKD
Those "expectations" referred to a strategy forecasting BTC/USD rising to $40,000 before another bearish phase puts in a fresh macro bottom.
Returning to current price action, meanwhile, significance came in the form of crucial trendlines being broken.
Related: 100X Bitcoin energy use would mean ‘absurd’ $20M BTC price — developer
Among them were the 200-week moving average (WMA) at $22,800 and Bitcoin's realized price at $21,934 as of July 19, data from on-chain analytics firm Glassnode confirmed.
Both are classic fixtures in Bitcoin bear markets, with BTC/USD usually wicking below while preserving the levels as basic support.
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