It adds to concerns about Bitcoin’s price surge to $22,400.The USD has broken out once more.
The asset is now on track for its biggest weekly gain since March. However, as things are, not everyone believes it will survive.
Since May, cryptocurrency sentiment has been at an all-time high.
According to TradingView and Cointelegraph, the Bitcoin/USD exchange rate has risen to $2,000. This week’s increase is nearly 12%.
After many days of stasis in a narrow range, the pair eventually gained ground. The gains accelerated on Friday, reaching $22,401.
The rate of rise alone is remarkable because it corresponds with BTC’s 200-WMA. It is an important level in the bear market that has been providing resistance for the last month.
The price is converging around the $1,000 mark. However, Bitcoin is indicating the likelihood of a trend reversal. Beating the 200-WMA, on the other hand, will be difficult.
Michael van de Poppe, a Cointelegraph columnist, summarized the scenario. He claimed that Bitcoin had reached $22,300 and that all high peaks had been attained. He went on to suggest that considerable preparation and consolidation are required.
This is especially important before the market breaks above the 200-WMA. When that happens, it will be a heavy one. The Bitcoin price may retest $20,700, according to some analysts.
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Something to be Thankful For: Liquidity
Van de Poppe already remarked that there is most likely a large quantity of liquidity. He chose a position that exceeded the 200-WMA. He predicted that a discovery may result in a $30,000 run within this time span.
He concluded that the sentiment would flow up with a flip.
The market impulse showed symptoms of reversal from the start of the day. Nonetheless, the Crypto Fear and Greed Index reached its highest level since May 7th. At 20/100, the scale is in the intense fear zone.
Another Week, Another 20-Year High
The market’s most recent price movement is sending doubters packing. Some of them anticipate a drop in level before healing begins.
A trader contended that many individuals expected to see 22,000 to 23,000. When the price was 47,000 or 48,000, it is now the new 52,000. When the price was 31,000 or 32,000 for the new 35,000.