Bitcoin (BTC) took aim at $24,000 on July 20 after a night of solid gains put bulls in the driving seat.
Against expectations, crypto staged a recovery beyond an intra-hour “fake-out” as risk assets benefitted from declining United States 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:
“Good sign for Bitcoin as things cool off for the DXY.”
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.
Major trendlines see a sudden test
Returning to current price action, meanwhile, significance came in the form of crucial trendlines being broken.
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.
Attention thus focused on the weekly close, which would confirm a breakout from the 200 WMA.
$BTC 1D— Roman (@Roman_Trading) July 19, 2022
Hard to believe but #bitcoin has broken the 50 DMA, 200 WMA (confirms week close), major upward resistance, & Bear Flag all in the same day.
Shorting a breakout isn't the best idea. I TP'd a bit early on longs but will reenter on a retest of support.#cryptocurrency pic.twitter.com/BDwf0f67GK
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