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Bitcoin dips to $22.6K, risking further losses if it fails to hold above 200-week MA

The mood across the cryptocurrency ecosystem is noticeably brighter on July 22 after a week of gains helped traders put the events of the past two months behind them and look toward a positive future. 

Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin (BTC) has been oscillating around support at $23,000 over the past couple of days and continues to hold slightly above its 200-week moving average (MA), which has been a reliable indicator of bear market bottoms in the past.

BTC/USDT 1-day chart. Source: TradingView

As the debate about the market’s direction continues to rage, here are the important levels to watch heading into the weekend, according to analysts.

Bitcoin needs weekly close above $22,800

The significance of Bitcoin trading above its 200-week MA was noted by independent market analyst Michaël van de Poppe, who posted the following chart highlighting the major support and resistance zones:

BTC/USDT 1-hour chart. Source: Twitter

According to van de Poppe, Bitcoin is “facing crucial resistance again” at $23,500, and what happens next will determine if its price heads higher or pulls back to support at $21,500. He explained:

“If that breaks at $23.8K, I’m assuming we’ll continue and then $28K is on the tables, but we also have a clear breakout above the 200-Week MA confirmed.”

The importance of BTC holding above the 200-week MA was further addressed by market analyst Rekt Capital, who highlighted the need for Bitcoin to see a weekly close above $22,800:

#BTC is see-sawing around the 200-week MA all week

The most important thing will be the confirmation relative to the 200-week MA in the form of a Weekly Candle Close

The 200-week MA represents the price point of $22800$BTC #Crypto #Bitcoin

— Rekt Capital (@rektcapital) July 22, 2022

Anticipating a big move

The recent price action is a sign that “a big move for #BTC is going to happen soon,” according to crypto trader and pseudonymous Twitter user CryptoGodJohn, who provided the following chart outlining two possible paths Bitcoin could take:

BTC/USD 1-hour chart…...

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