As Bitcoin (BTC) struggles to keep its head above the $23,000 mark in the seemingly positive turn of events for the general cryptocurrency market, traders and investors are analyzing its price action, trying to predict its future behavior.
Upon detailed examination of the maiden token, crypto trading expert Michaël van de Poppe has identified “a potential area for longs on Bitcoin” that could be getting closer and revealed it in a chart illustrating his analysis via Twitter on July 21.
According to van de Poppe’s analysis, the potentially oncoming area for making longs on the flagship digital asset that investors should watch out for is around $22,164.
However, as a result of the European Central Bank (ECB) increasing interest rates in the eurozone by 0.5% for the first time in 11 years and as rising inflation becomes the primary concern for central bankers, the price of Bitcoin has dropped by almost 5%.
Some analysts consider that the BTC price could nosedive if it fails to climb above the 200-week Moving Average, thus providing an opportunity for those who believe it could drop below the $22,000 support level to short Bitcoin instead.
Meanwhile, other factors that could affect the price of Bitcoin to go either way include how the market handles the revelation of the electric vehicle (EV) maker Tesla (NASDAQ: TSLA) that it sold $936 million worth of Bitcoin, or 75% of its holdings, during the second quarter of 2022.
Bitcoin price and market cap analysis
As it happens, Finbold earlier reported on more than $70 billion flowing into Bitcoin’s market capitalization in a single week, increasing it by 19.63% to around $451 billion along with its price strengthening by 19.81%.
At press time, Bitcoin is trading at $22,639, which is a 4.57% loss on the day, according to CoinMarketCap data. Nevertheless, it’s a 14.60% increase across the previous seven days.
Bitcoin’s current market cap stands at $432.39 billion, which is a slight drop of 4.2% from the $451 billion it previously reached.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.