- Bitcoin broke above the 50-day moving mean with its push over $24k.
- BTC could rally 18% more before reaching the $28k mark of significant resistance.
- Bitcoin investors and miners may also be causing a slowdown in capitulation.
Bitcoin’s first week has been a wild one. It broke the $22k resistance on Monday, and today it broke the $24k resistance to reach a local high of $24,276.
Bitcoin could gain another 18% after surpassing $24k.
Bitcoin’s impressive price movement despite record-breaking inflation around the world has prompted popular BTC analyst, Magic Cannon, to forecast that the digital asset could gain another 18%.
According to Magic, Bitcoin has shown strength by breaking the 50-day moving average and could keep pushing past $24k to the $28k price level ‘before hitting the last major resistance zone.’
Magic’s analysis of Bitcoin’s current price action can be found in the tweet below.
#BTC It has crossed above the 50-day MA (in yellow) and could rally another 18% to the last major resistance zone. pic.twitter.com/Ss7y8w2UGM
— MAGIC (@MagicPoopCannon) July 20, 2022
$28k Is Around Bitcoin’s 100-day Moving Average.
The daily BTC/USDT chart below confirms that Bitcoin has recovered the crucial 200-week moving median (red) as support. This critical moving average has a history in marking Bitcoin bottoms. It could be an indicator that BTC sellers and investors may have subsided.
The daily MFI, MACD and RSI point to an overbought Bitcoin scenario that could lead to a pullback towards the $22.5 k price zone. But, if Magic’s analysis is to be considered, a push higher to $28k is in line with Bitcoin tapping the 100-day (yellow) moving average around the same level.
Bitcoin Has Punched Through a Capitulation Structure – Willy Woo.
Similarly, veteran Bitcoin analyst, Willy Woo, has noted BTC’s price movements in the last few days and concluded that the digital asset could have ‘punched through a capitulation structure’ that could foreshadow the beginning of a proper bottom. His analysis was shared through the following statement Detailed chart with accompanying table
BTC was able to breach a capitulation structure. i.e. Investors who bought higher prices sold out in large numbers, while urgent buyers rallied against the selling. Next, you need to see the contours getting dense under the price.