Bitcoin (BTC) delivered a swift six-week high into July 29 as the aftermath of the latest macro developments boosted risk assets.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Monthly close could seal 20% gains
Data from Cointelegraph Markets Pro and TradingView captured local highs of $24,445 for BTC/USD on Bitstamp, its best since the week beginning June 13.
After consolidating around $23,000, bulls got a second wind to propel the market higher on the back of the United States Federal Reserve’s latest rake hikes and GDP data confirming that the U.S. was now in a recession.
Risk assets outperformed across the board, with Bitcoin and altcoins joining gold in giving traders and analysts cause for positivity on the outlook.
Gold #GOLD $GLD $GC_F held the lower boundary of a 23-month rectangle (yellow) that will serve as the Handle for a massive C&H. The bull market has started. Prices head north. Target headed to $3,000+ over next couple of years pic.twitter.com/ympPpf7ojP
– Peter Brandt (@PeterLBrandt) July 28, 2022
“This is getting interesting,” on-chain monitoring resource Material Indicators tweeted in an update on its short and long signal thread for the daily BTC/USD chart June 28. It eyed the potential for Bitcoin to make a higher high (HH) next:
“All Trend Precognition signals printing Long on the D chart, plus the 21-DMA and the 50-DMA unwinding. If BTC can make a HH there is little friction to the next HH, and then the macro channel comes into range YES, this is still a bear market rally.”
Material Indicators added that $25,000 would also be a key price level to watch should the higher high at $24,300 hold for a daily close.
“If this rally can push past $25k, then $28k comes into focus very quickly,” part of a further post read.
“Parabolic downtrend from ATH broken,” Blockware lead insights analyst William Clemente meanwhile summarized in a wry alternative take on current BTC price action in 2022.
Versus the same point last week, BTC/USD was up a modest 4% at the time of writing. With two days left before the July weekly close, the pair was on track to seal monthly gains of over 20%, data from Coinglass confirmed.
BTC/USD monthly returns chart (screenshot). Source: Coinglass
Ethereum eyes key support reclaim above $1,700
The picture on altcoins was similarly rosy on the day, with Ether (ETH) moving past $1,700 to challenge highs from the week of June 6.
Related: 3 Bitcoin trading behaviors hint that BTC’s rebound to $24K is a ‘fakeout’
Does this freak you out or get you very, very excited?#ETH https://t.co/Mc62xW4m1x
– Material Indicators (@MI_Algos) July 29, 2022
While Material Indicators played with the idea of a further retracement and lower low far beneath $1,000, others acknowledged the strength of short-term price action across altcoins.
“$ETH as well as many Altcoins have performed successful retests of old resistances into new supports and have since rebounded strongly,” popular trader and analyst Rekt Capital reacted.
Strong rebound from $ETH following a successful retest
ETH is slowly approaching its next immediate resistance (upper orange box)
ETH would need to reclaim the bottom of that box as support if it is to move even higher#ETH #Crypto #Ethereum https://t.co/tkPGBVW76d pic.twitter.com/CiaYKNh6ha
– Rekt Capital (@rektcapital) July 28, 2022
Additional analysis demanded that ETH/USD reclaim a support zone beginning at around $1,730 for continuation.
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