BTC Price Rebounds After Sell-off
The price of Bitcoin (BTC) has started to rebound after a recent sell-off that almost weakened support at $25,000. Following August’s retail investor capitulation, whales have begun selling, with some closing out their positions in the hopes of reentering at lower price points, such as $22,000.
According to Greeks.live, large whales have been buying monthly put options, causing the short-term put implied volatility to rise. Despite this, defending the $25,000 support is crucial for Bitcoin’s potential breakout to $30,000.
BTC Price Bulls Gain Momentum
Bitcoin’s current price is $25,655, with relatively little change over the past 24 hours. To confirm an uptrend, investors need to see a buy signal from the Moving Average Convergence Divergence (MACD) indicator, indicated by the blue line crossing above the red signal line.
The Money Flow Index (MFI) suggests that more people are interested in a bullish outlook for BTC, especially after the defense of the $25,000 support. However, reclaiming the previous support at $26,000 and overcoming seller congestion at the 50-day Exponential Moving Average (EMA) may pose challenges for the bulls.
Key milestones, including a daily close above the 50-day EMA and the resistance/support at $25,000, will determine the certainty of gains. Ultimately, reaching $30,000 will depend on the bulls’ ability to weaken the seller congestion at the descending trendline.
Hot Take: BTC Price Rebound Faces Resistance Amid Whales’ Selling
The recent rebound in Bitcoin’s price following a sell-off is facing resistance as whales continue to sell off their positions. While the defense of the $25,000 support is a positive sign for the bulls, reclaiming the previous support at $26,000 and overcoming seller congestion at the 50-day EMA are crucial for further gains.
Traders should pay attention to the MACD indicator for a buy signal and monitor the MFI for signs of bullish sentiment. The short-term put implied volatility has risen due to whales buying monthly put options, indicating a divergence in market sentiment.
To solidify the uptrend and potentially reach $30,000, Bitcoin needs to surpass key milestones, including a daily close above the 50-day EMA and the resistance/support at $25,000. The ability to weaken seller congestion at the descending trendline will be a determining factor in Bitcoin’s future price movement.
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