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Bitcoin price rejects at $24K as ‘classic short setup’ spoils bulls’ fun

Bitcoin (BTC) saw fresh volatility after July’s final Wall Street open as highs north of $24,000 remained solid resistance.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Resistance strikes BTC at $24,000

Data from Cointelegraph Markets Pro and TradingView reflected bulls’ continuing struggle as BTC/USD lurched around the $24,000 mark on July 29.

The pair had attempted to match the week’s local top of $24,450, this ultimately failing to materialize as a resurgent U.S. dollar pressured crypto despite U.S. stocks gaining.

The U.S. dollar index (DXY) continued higher during the Wall Street trading, passing 106 after falling to its lowest levels since July 5.

U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView

Record Eurozone inflation added to the mix of macro triggers on the day, while the monthly close remained a guessing game for Bitcoin analysts.

On short timeframes, popular trader Crypto Tony eyed what he called a “classic short setup” around the high, which remained Bitcoin’s best since mid-June.

$BTC / $USD – Update

A classic short setup with a clear invalidation point ..

Did anyone catch it pic.twitter.com/DTW2rAYM9K

— Crypto Tony (@CryptoTony__) July 29, 2022

Nonetheless, other key levels remained apt to act as support in the event of a deeper drawdown. These included Bitcoin’s 200-week moving average at around $22,800 and realized price at $21,820.

#bitcoin back above realized price, light blue, I like it pic.twitter.com/Rr0r4boljC

— PlanB (@100trillionUSD) July 29, 2022

In terms of the former, however, Bitcoin’s weekly candle would need to close for confirmation of a resistance/support flip, fellow trader and analyst Rekt Capital noted on the day.

The weekly close would also act as the monthly close, making July 31 a key psychological day of reckoning after June’s 40% drawdown — Bitcoin’s worst monthly performance since September 2011, figures from on-chain data resource Coinglass confirmed.

Bitcoin monthly returns chart (screenshot). Source: Coinglass

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