Bitcoin (BTC) faked a breakout to new six-week highs on July 31 as a showdown for both the weekly and monthly closes approached.
“Bart Simpson” Greets Traders at BTC’s Monthly Close
Data from TBEN Markets Pro and TradingView showed that BTC/USD wiped out all of its gains from the start of the weekend, falling from $24,670 to $23,555 in hours.
The resulting chart structure was all too familiar to long-term market participants, creating a “Bart Simpson” shape on hourly time frames.
Liquidations nevertheless remained manageable, totaling $150 million in the 24 hours to the time of writing according to data from analytics source Coinglass — less than on previous days.
For popular trader and analyst Rekt Capital, there was now reason to believe that the upcoming weekly candle close would confirm that Bitcoin had recovered a key trendline as support after weeks of failure.
— Rekt Capital (@rektcapital) July 30, 2022
Looking ahead, however, not everyone was convinced that the current market power still had a lot of room left to continue.
In one of several Twitter posts over the weekend, Material Scientist, maker of on-chain analytics tool Material Indicators, saw funding rates on derivatives platforms increasingly positive, suggesting an overly strong consensus that prices could rise unchecked.
“Negative funding has almost completely reset, as it did at the end of March. We may even see positive funding on some alts soon,” he said. wrote.
“I think there’s one last bang in the shady area before the bear rally melts away.”
Nevertheless, BTC/USD was still on track to hit around 19% monthly gains for July, a stark contrast to all other months of the year so far.
In fact, according to data from Coinglass, July’s returns were poised to be Bitcoin’s best since its all-time highs of 2021.
One of the “biggest bull markets” could be waiting for Bitcoin right now
Other perspectives paid little attention to the prospect of a new correction in the near term.
Related: Historically Accurate Bitcoin Stats Leave Buy Zone in ‘Unprecedented’ 2022 Bear Market
Mike McGlone, senior commodities strategist at Bloomberg Intelligence, looked at potential performance in the second half of 2022 and left little doubt about how Bitcoin, in particular, would fare.
Hints that the Federal Reserve would tackle rate hikes “meeting by meeting,” as Chairman Jerome Powell this week, “may mark the pivot for #Bitcoin to resume its tendency to outperform most assets,” he said. argued on social media.
“July marked the steepest discount in Bitcoin history from the 100- and 200-week moving averages, with recovery implications,” he added over the 200-week trendline.
“I see risk versus reward tilted favorably for one of the largest bull markets in history.”
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