Bitcoin price braces for another rally after testing $25,000
The Bitcoin price has bounced up and down over the past couple of weeks, but the digital asset has finally found its direction. With this recent recovery, the price of bitcoin has made its way to comfortably above $24,000 currently. The digital resource had tested one of the most sought-after spots on Sunday, but was unfortunately rejected. That hasn’t stopped it, however, as bitcoin prepares for another rally towards $25,000.
$25,000 for Bitcoin price
After touching $25,000 on Sunday, the bitcoin price had taken a rapid decline. This led to an inevitable decline below $24,000, but would prove to be short-lived. After being pushed back down, bitcoin was able to find support just below $24,000 and used it as a bounce-back point to regain strength above the technical level.
Even with the decline, it had been able to stay well above the 50-day moving average, thus keeping the bullish trend on track. What this shows is that bitcoin is not ready to give up the $25,000 fight just yet. Instead, a retest of this resistance level is expected to occur on Monday.
All of this is happening ahead of the US trading session, so it is expected that when this side of the world begins trading activities, there will be another upward push. In addition, bitcoin’s ability to quickly rise above $24,000 is showing significant strength on the 24-hour chart.
The next resistance for bitcoin’s price is currently $24,765. However, at this point there is not much support for the bears, so the price is likely to get an easy breakout here. The main level to beat is still $25,000.
Investors are bullish
The bullish sentiment among investors in cryptocurrencies such as bitcoin continues to increase. The fear and greed index, which reached its all-time high of 47 on Sunday, shows as much. Translating this to the performance of bitcoin over time shows that the rally is far from over.
Such trends run until the index reads well into the extreme greed area before a reversal is seen. So if historical movements are anything to go by, it could take a couple of weeks for investor sentiment to peak, at which point the possibility of bitcoin approaching $30,000 remains high.
It is also seen in net exchange flows for the last day. Bitcoin had seen more inflows, but this had reversed on Friday when outflows had outpaced inflows, indicating that investors were actually accumulating the digital asset.
If this accumulation trend continues, bitcoin will likely gather enough strength to balance well above $25,000. Once this point is beaten, the next important technical level lies at $28,000, given that this was the 2021 cycle low.
Featured image from CNBC, chart from TradingView.com
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