The 200-week moving average keeps bulls in check, and traders are keeping quiet on the chances of a breakthrough so early.
Bitcoin (BTC) hovered at $22,000 at the July 18 Wall Street open as analysts warned that bulls would not break resistance in one go.
Can Bitcoin win back bear market support?
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD returning to consolidate after hitting highs of $22,500 on Bitstamp.
That level represented the start of sell-side positions on exchanges clustered around the 200-week moving average (WMA), a key area which commentators argued would be hard to crack.
“Not expecting continuation on Bitcoin, at this point, as we’re facing 200-Week MA & range resistance,” Cointelegraph contributor Michaël van de Poppe told Twitter followers in his latest update.
Fellow trader and analyst Rekt Capital, as others, was also skeptical about the potential for Bitcoin to continue upward momentum immediately.
#BTC still remains below the 200-week MA resistance
Until that level breaks, it’s technically premature to assume this is now a sustained relief rally$BTC #Crypto #Bitcoin
— Rekt Capital (@rektcapital) July 18, 2022
Van de Poppe nonetheless added that a breather for the market would be profitable at current levels. He concluded:
“Slight consolidation would trigger continuation and break above $22.6K would activate massive longs towards $28K. Good times.”
Both Bitcoin and altcoins made the most of relief on equities markets on the day, with Asia and the United States making modest gains as the U.S. dollar retreated.
The S&P 500 and Nasdaq Composite Index were up 0.7% and 1%, respectively, at the time of writing, one hour after the opening bell.
“Prime time for Bitcoin,” on-chain analytics resource Whalemap meanwhile forecast, offering a more optimistic take based on major buyer interest below spot price.
Prime time for #Bitcoin
Bounce from whale supports at ~$21k and we are ready to pic.twitter.com/x8hcmcgUw0
— whalemap (@whale_map) July 18, 2022
Data from fellow monitoring resource Material Indicators showed similar support building on the Binance order book.
Ethereum preserves performance
On altcoins, the show was still being stolen by Ether (ETH), which lingered near $1,500 after sealing its highest levels in over a month, with huge gains against BTC included.
Related: BTC miners ‘finally capitulating’ — 5 things to know in Bitcoin this week
Beating even Bitcoin’s progress, ETH/USD was the darling of traders on the day, firmly upending the previously dire price action in place from May onwards at the start of the Terra LUNA debacle.
This is the first time, in 110 Days, that #Ethereum has broken into a bullish trend, printing Higher Lows & Higher High.
Bears in disbelief.#cryptocurrency pic.twitter.com/MA2KAYzyWu
— wolf (@ImNotTheWolf) July 17, 2022
Upcoming resistance lay in the form of Ethereum’s all-time high from the previous Bitcoin halving cycle at $1,530, which it touched in early 2018.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.