Bitcoin holds up for 5 weeks as trader suggests ‘parabolic’ bear trend is over

Bitcoin (BTC) was targeting $24,000 on July 20, after a night of solid gains put bulls at the helm.

BTC/USD 1-hour candlestick chart (bit stamp). Source: TradingView

Parabolas violated

Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it crossed $23,800, its highest level since June 13.

Against expectations, crypto kicked off a recovery that went beyond an hour-long “fakeout” as risk assets benefited from the declining strength of the US dollar.

The inverse correlation between the US dollar index (DXY) and Bitcoin continued to take center stage that day, with the dollar hitting a 20-year high at the end of the week before.

US Dollar Index (DXY) vs BTC/USD 1 Day Candlestick Chart. Source: TradingView

“The dollar is taking a nice blow from the bears today,” popular trader Crypto Tony told Twitter followers as the outbreak took shape:

“Good sign for Bitcoin as things cool down for the DXY.”

Fellow analyst Wolf, meanwhile, looked at the collapse of a “parabolic trend” on DXY during 2022. At the same time, according to popular trader Jibon’s analysis, BTC/USD had ended its parabolic run to macro lows.

Those “expectations” referred towards a strategy that predicts BTC/USD will rise to $40,000 before another bearish phase triggers another macro floor.

Major Trendlines See Sudden Test

Returning to the current price action, meanwhile, meaning came in the form of breaking crucial trendlines.

Related: 100X Bitcoin Energy Consumption Would Mean ‘Absurd’ $20 Million BTC Price – Developer

Among them were the 200-week moving average (WMA) at $22,800 and Bitcoin’s realized price at $21,934 on July 19, data from on-chain analytics firm Glassnode confirmed.

Bitcoin realized price chart. Source: Glassnode

Both are classic fixtures in Bitcoin bear markets, with BTC/USD usually dropping below maintaining the levels as the base support.

Attention thus turned to the weekly close, which would confirm a break of the 200 WMA.

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