Bitcoin price rises to $21.8K, but analysts warn the move could be fake

The hope is endless for many crypto investors after the market saw positive price action alongside traditional market gains on July 7.

Daily cryptocurrency market performance. Source: coin360

The green day comes amid rising US jobless claims, a possible sign that “wage pressure may now be at its peak,” according to Harris Financial Group Managing Partner Jamie Cox. According to Cox, the continuation of this trend could result in financial conditions “tight enough to allow the Fed to scale back rate increases.”

Data from Cointelegraph Markets Pro and TradingView shows that after trading around $20,400 for most of the day on July 7, the price of Bitcoin (BTC) rose nearly 7% in the afternoon to $21,860.

BTC/USDT 1-day chart. Source: TradingView

As crypto loyalists try to navigate the choppy waters of the crypto winter to find a market bottom, here is what several analysts predict could be the next for Bitcoin.

The trend remains negative

Twitter user “Roman” sent The chart below shows, “Many are euphoric and bullish as we have repeated similar candlestick patterns in the last 8 months.”

BTC/USDT 1-day chart. Source: Twitter

While in Roman’s view this is the latest in a series of scams that would lead many traders to believe they are on the bottom, in reality the trend remains negative.

Rome said,

“Decreasing volume in a range is consolidation for the continuation of the trend. Not to mention the thousands of entries to the stock markets before each peak.”

A recovery above $23,000 would be bullish

Another trader who is of the opinion that the trend remains strictly negative is Gilberto, nicknamed on Twitter. provided The chart below indicates that Bitcoin’s price has recently emerged from a pennant formation.

BTC/USD 4-hour chart. Source: Twitter

Gilberto said,

“Rise above $23,000, daily trend still down for now.”

As for what the potential price path could look like for Bitcoin if the downtrend continues, market analyst Crypto Tony said. sent The chart below outlining a “worst case scenario” where BTC could bottom around $12,000.

BTC/USD 1-week chart. Source: Twitter

Crypto Tony said,

“I don’t think we’ll see the start of the next impetus until next year and a new bull run peak until 2024 – 2025. I’m already between $22-24k and will add if we drop to $17-15k.”

Related: Bitcoin traders expect ‘intergenerational bottom’ but BTC derivatives data disagree

Traders watch the 200-week moving average

When it comes to metrics that are reliably used to help identify market bottoms, the 200-week moving average (MA) is one of the most popular and most quoted. indicators which traders use to identify good buying opportunities.

BTC/USD 1-week chart. Source: Twitter

With Bitcoin falling back below the 200-week MA for only the fourth time in its history, speculation has begun to rise about how long it will take to break above this line and what the trading appetite will be like once it gets there.

In response to this possible scenario, independent market analyst Michaël van de Poppe posted the following tweet outlining what he thinks might happen once the 200-week MA recovers.

The overall cryptocurrency market cap is currently $957 billion and Bitcoin’s dominance rate is 43.1%.

The views and opinions expressed here are those of the author alone and may not necessarily reflect those of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.