Bitcoin struggling to close above $24k, but indicators remain optimistic

Key Takeaways:

  • Several indicators forecasted positive sentiments for Bitcoin.
  • However, BTC prices struggle to close Jul at $24,000.
Bitcoin prices struggle to close the current month above $24,000
Bitcoin prices struggle to close the current month above $24,000. Image from Pixabay

NEW DELHI (CoinChapter.com) — Bitcoin (BTC) prices might close Jul above $24,000 after the prime crypto rose by nearly 4.3% to reach $24,670 on Saturday. Although traders moved to profit book later in the day, several technical indicators forecasted a positive end of the month for BTC prices.

Technical Indicators Might Be Indicating A Reversal In The Cards For Bitcoin

Crypto analyst Will Clemente believes that BTC prices have found support. In an interview with investor Anthony Pompliano, Clemente highlighted that the 180-week EHMA, a recent price-weighted moving average indicator, has turned green.

Bitcoin prices have historically rebounded from the 180-week EHMA trendline
Bitcoin prices have historically rebounded from the 180-week EHMA trendline. Source: Anthony Pompliano/Youtube

Historically, the indicator has often indicated “macro bottoming or accumulation areas,” the analyst noted. Clemente highlighted that BTC’s failed breakouts or breakdowns have been “a better signal for the token’s price action than actual breakouts and breakdowns.

Related: Bitcoin price hits $24K — time to ‘BUY BTC?’

In addition to the EHMA, Bitcoin prices might be gearing up to conquer their 200-week moving average. A move above the long-term indicator might signal bullish momentum returning for Bitcoin prices. Moreover, a 200-day EMA has previously acted as a strong support level for BTC price action.

A close above the 200-week MA line would be a first for BTC since Jun this year. News of the U.S. entering a technical recession helped add macro tailwinds to Bitcoin prices. However, analysts warned that thinner liquidity might lead to more volatile weekly and monthly closes.

Additionally, the overall market sentiment has improved, with the Crypto Fear & Greed Index at its highest since April 6. A value of 39/100 indicated that the index is technically neutral.

BTC Fails To Hold Above $24,000

Meanwhile, Bitcoin prices failed to hold on to their gains after rising above $24,500 on Saturday, As the bears moved in late in the day, the price of the alpha cryptocurrency declined sharply to close at $23,644.

Bitcoin began Jul 31 on a positive note, as prices moved up by $324 in an effort to conquer the $24,000 level. BTC prices flipped the 50-day exponential moving average (50-day EMA, purple wave) on Jul 28, and the MA trendline has since supported Bitcoin’s price action.

However, if the immediate support fails, BTC prices risk falling to support near $22,800. A marketwide sell-off might see BTC close near $21,670, a drop of nearly 9% from current levels.

BTCUSD daily chart with RSI
BTCUSD daily chart with RSI. Source: Tradingview.com

Meanwhile, the relative strength index for Bitcoin remained neutral, clocking at 60.23 on the daily timeframe.

Also Read: Bitcoin block reward indicator suggests BTC accumulation is near.

The RSI measures the magnitude of recent price changes to analyze overbought or oversold conditions. Traders often consider overbought RSI values as a sell signal. The RSI values are quite near the oversold threshold of 70.

Conversely, if BTC prices rise above $24,000, the token would have face resistance near $24,600. A move above immediate resistance would provide Bitcoin prices the momentum to challenge resistance from its 100-day EMA (blue wave) near $26,400.

At writing, BTC was trading at $23,771, up 0.52% on the day.

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Bitcoin, Bitcoin struggling to close above $24k, but indicators remain optimistic

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