Bitcoin (BTC) broke above $67,000 on the weekly close on July 21, setting the stage for a 10% rally in a “very explosive move.”
Bitcoin Price Continues ‘Amazing Retest’
BTC price action surged to new July highs over the weekend, according to data from Cointelegraph Markets Pro and TradingView.
The largest cryptocurrency continued its recovery in after-hours trading, up 10.4% on a weekly basis and 6.6% in July as of this writing, according to monitoring firm CoinGlass.
Naturally, market participants were optimistic about the outcome.
Popular trader Benjamin Cowen expects the 20-week simple moving average (SMA) at $65,650 to act as support going forward.
“BTC had a very explosive move back above BMSB from the lower trend line,” X wrote in his post.
“Let’s see if BTC can stay above the 20W SMA.”
Cowen cited the Bitcoin bullish support band, an area of interest between the 20-week SMA and the 21-week exponential moving average (EMA). As Cointelegraph reported, BTC/USD has been trading above the band for most of the recent bull run.
Meanwhile, trader and analyst Rekt Capital highlighted the relative minimality of Bitcoin’s correction since its fresh highs in March.
He added that on a monthly basis, BTC/USD successfully retested its 2021 highs as part of an ongoing resistance/support reversal.
“There was a massive retest of the previous high resistance level (red) as new major support (green),” he commented with an explanatory chart.
“Bitcoin has successfully retested this critical area as new support for the fifth consecutive month.”
Cryptocurrency sentiment hits ‘extreme greed’
In further evidence of the scale of the cryptocurrency recovery, sentiment toward cryptocurrencies, as measured by the Crypto Fear & Greed Index, is at its “greedy” level in a month.
Related: Bitcoin’s ‘Incredibly Tight’ Bollinger Bands Suggest BTC Price Target at $190K
The classic sentiment index, which combines several factors to calculate an overall sentiment score for the cryptocurrency market, was at 74/100 on the day, just below “extreme greed.”
Just a week ago, the index was at just 25/100, which corresponds to the opposite scenario of “extreme fear” that characterizes the average trader’s market outlook.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.