Crypto Rally: Bitcoin (BTC) Breaks $22,000 and Rising

Key Insights:

• A bitcoin (BTC) four-day rally Wednesday through Saturday reflected a possible shift in investor sentiment.
• Having failed to revisit $22,000 since July 8, a bullish start to the week drove BTC to $22,000 to give the bulls a run at $25,000
• Technical indicators are flashing green, with the EMAs signaling the beginnings of a bullish trend formation.

On Sunday, bitcoin (BTC) declined by 1.92%. Reversing a 1.79% gain from Saturday, BTC ended the day at $20,793. While a four-day winning streak ended, a modest weekly loss of 0.26% came despite market angst toward Fed monetary policy.

However, failure to break through to the $22,000 handle remained a bearish BTC indicator until this morning.

Having found support from the NASDAQ 100 over the last week, the NASDAQ 100 remained the key driver today.

This morning, the NASDAQ 100 Mini was up by 95 points to deliver early support. Significantly, the morning gain suggested that investor jitters over Fed monetary policy and the US economic outlook may have eased.

BTC Return to $22,000 Brightens the Sky for the Broader Crypto Market

BTC continues to be the barometer of the broader crypto market. This morning, BTC returned to $22,000 for the first time since July 8. Prior to July 8, BTC last stood at $22,000 on June 16.

A retracement of the June sell-off would point to a BTC return to $30,000, with the bulls needing to break down resistance at $25,000 on the way.

In mid-June, BTC tumbled for seven consecutive days on the way down to sub-$22,000, reflecting a marked shift in investor sentiment. We expect a similar trend to form on the bullish side, should BTC hold onto the $22,000 handle today and consolidate the hold tomorrow.

For the broader crypto market, the BTC return to $22,000 is also good news. As reviewed earlier this morning, technical indicators for numerous cryptos are turning bullish, suggesting a shift in investor sentiment.

A momentum-driven recovery should drive the total crypto market cap to the $1 trillion mark, another milestone for investors.

This morning, the total crypto market cap stood at $986 billion, up $55 billion through the early hours.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 6.70% to $22,187.

A bullish start to the day saw BTC rise from an early low of $20,761 to a high of $22,308.

Technical Indicators

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. This morning, bitcoin broke out from the 200-day EMA, currently at $21,823.

A bullish cross of the 50-day EMA through the 100-day EMA supported the early breakout.

Through the remainder of the day, a hold above the 200-day EMA would support a run at $25,000.

Looking at the trends, a move through the July high of $22,377 and $25,000 would target the June high of $31,956.

From $31,200, BTC should have a clear run at the May high of $40,004.

For the bears, the June 18 low of $17,601 would be the price target, with a fall through last week’s low of $18,919 likely to test investor resilience.