Bitcoin price withstood the fresh jump in the inflation rates by 75 basis points that recorded a 40-year high hitting 9.1%. While the price was expected to drop hard to hit the June lows, the buyers uplifted the price above $20,000 again. However, the current jump is still believed to be a short-lived one as a correction to $15,000 is imminent.
While the star crypto has tested the resistance at $20,800 multiple times, the levels now stand pretty weak as it failed to defend them each time. Therefore, a clear pass through these levels may ignite a strong upswing without a requirement of a retracement or correction. The next major resistance is around $23,000 which may be tested after clearing the levels around $22,800.
The BTC price is heading towards the crucial resistance at 200-day MA levels in the short term. The previous contacts since the beginning of July 2022 followed a pattern. While the first two times, the price faced rejection while the next two times the price found a strong base to rebound. Considering the pattern could repeat, the upcoming contact may be bearish as the previous ones faced a rejection.
Interestingly, the 200-day MA levels in the hourly chart collide with crucial resistance at $22,000 and if the pattern stands nullified, a clear path to $23,000 may be laid down. On the other hand, the BTC price in the long term after a bearish close in June, the asset is on the verge to test the lower support at 200-day Weekly MA looking for a major bounce.
Therefore, with a strong rebound, the analyst believes the asset may close July’s trade at $22,000.
Collectively, the BTC price is within the bearish range, but attempting to break out from the pattern. Therefore the upcoming weekend trade is believed to be pretty crucial as the next plan of action may be carried out accordingly.