Bitcoin Price Has Strong Potential To Hit $25,000, Weekly Analysis Suggests

- Advertisement -


Recently, the market has seen a strong correction due to the uptrend in bitcoin price over the past several days. On December 7, 2020, the price touched a low of $19,030.09, which is considered to be a new all-time low.

- Advertisement -

However, the appearance of a double bottom pattern has given rise to an optimistic outlook on this correction.

- Advertisement -

As is now more clear, bitcoin could rally. Obviously, there will be some challenges along the way. The current momentum of the bitcoin price is one of the major challenges facing the cryptocurrency.

- Advertisement -

According to the latest analysis, the current momentum is just reversing the previous downside trend thus it might not be enough to break the $25,000 price level.

Bitcoin Price: Familiar Resistance Levels

The price of bitcoin actually reached $25,000 at the end of August, which is an important milestone. Such a pattern indicates that the current market has and is likely to break through resistance.

Chart: TradingView.com

Looking at the range over the past four hours, it looks like BTC will currently be trading between $19,226 and $24,286.

The challenge is due to traders’ pessimism in response to the latest CPI report. The survey revealed an annual inflation rate of over 8 percent.

This bleak valuation could lead to a 1% hike in interest rates. Therefore, the bulls should maintain their positions within the $19,226 range to generate momentum.

The Leading Oscillator Indicator is showing bullish momentum. Conversely, the moving averages are showing bearish signals.

Sustainable momentum is essential for bitcoin

For the price to continue rising, the bulls must generate consistent momentum. Once again, stability will outweigh the chances of a dramatic improvement.

Bitcoin price should not drop below the 71.60 Fibonacci level. If the bears break the downside, bitcoin price could drop to $18,000.

This event will lead to further fall in prices. A perpetual momentum should be one of the top goals of the bulls for a rally to cross the $25,000 range.

However, given the current pessimism and panic in the market, it may take some time for BTC to reach the $25,000 level.

BTC total market cap at $384 billion on the 4-hour daily chart | Source: TradingView.com

Featured image from Business World IT, Chart: TradingView.com



Credit : www.newsbtc.com

- Advertisement -

Recent Articles

Related Stories