The Bitcoin Rollercoaster Ride: Will $25,000 Hold?
The Bitcoin (BTC) price has fallen since its yearly high in July. It recently broke down from a long-term ascending support line. Here are the key points to know:
– Technical analysis on the weekly timeframe shows bearish signs due to a deviation above the $30,000 resistance area and subsequent decrease below it.
– The rejection at long-term resistance led to BTC breaking down from the ascending support line, which is considered a significant bearish development.
– Despite the bearish price action, the news is mostly positive, with analysts expecting approval for Bitcoin ETF applications and speculation about Google’s Bitcoin-related motives.
– The weekly RSI is decisively bearish, moving below 50 for the first time since the beginning of the year, validating the breakdown and suggesting more downside.
– The daily timeframe also indicates more downside, with BTC falling under a descending resistance line, a bearish divergence in the daily RSI, and the wave count suggesting a fifth and final wave of a downward movement.
– However, a breakout from the descending resistance line could signal the correction is over and the trend remains bullish.
In conclusion, Bitcoin’s price is experiencing a rollercoaster ride, with the possibility of more downside. Traders and investors should monitor key levels like $25,000 to gauge the market’s direction.
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