Bitcoin Faces Resistance After Rebound from $25K Support
The price of Bitcoin has recently bounced back from the $25K support level, but it is currently being rejected by a key resistance zone.
Technical Analysis
The Daily Chart
Looking at the daily timeframe, the price has been rising after finding support near $25K. However, the 50-day moving average around $27K is pushing the price down. Another significant resistance level is the 200-day moving average, which is trending near $28K.
In order to retest the $30K level, Bitcoin must overcome this resistance. On the other hand, if BTC fails to maintain its bullish momentum and falls below $25K, it is likely that the market will decline towards the $20K area.
The 4-Hour Chart
On the short-term 4-hour chart, there are indications of a bullish outlook. The price has broken above a large falling wedge pattern, which is a classic bullish reversal signal. From a classical price action perspective, Bitcoin’s price is expected to rise again towards the $30K resistance level.
However, before rallying higher, the price needs to complete a pullback. Once this pullback is completed, a breakout would be more likely and considered a strong bullish signal.
Onchain Analysis
By Shayan
Bitcoin has been experiencing a significant downtrend in recent months, falling below the 100-day and 200-day moving averages. This decline has raised concerns about Bitcoin’s ability to successfully break through the critical support at $25K.
The Bitcoin taker buy-sell ratio, an important indicator that reveals the intensity of long and short positions in the perpetual market, shows a consistent downtrend. This indicates that futures traders predominantly hold a bearish view of Bitcoin. The prevalence of short positions among traders may put downward pressure on the price in the short term.
Hot Take: Bitcoin Dilemma: Will It Hit $25K or $30K First?
Bitcoin’s price is currently facing resistance after rebounding from the $25K support level. The technical analysis suggests that the price needs to overcome key resistance levels, such as the 50-day and 200-day moving averages, to retest the $30K level. However, if BTC fails to maintain its bullish momentum and falls below $25K, it could decline further towards the $20K area. Onchain analysis shows a consistent downtrend in the taker buy-sell ratio, indicating a bearish sentiment among futures traders. This could put downward pressure on the price in the short term. Overall, Bitcoin’s next move remains uncertain, with both $25K and $30K as possible scenarios.
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