The price of Bitcoin has shown a promising surge, bouncing back into positive territory and inching closer to reaching the notable milestone of $25,000 per unit.
On Saturday, Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, experienced a surge toward the $25,000 mark, signaling a significant recovery for the crypto markets following yesterday’s declines.
Despite a dip to $23,712.05 on Friday, the BTC/USD pair quickly bounced back and reached an intraday high of $24,924.04 earlier in the day, indicating a bullish sentiment among traders.
This upward movement in Bitcoin’s price has once again propelled it beyond its long-standing resistance level at $24,200, a level it has been struggling to break out of for quite some time
Furthermore, in addition to the previous point, it is worth noting that the 14-day relative strength index (RSI) has recently exhibited some positive movement. Specifically, after hovering close to the 61.00 mark on Friday, the RSI has now moved back above its resistance level at 65.00. This suggests that bullish sentiment may be gaining momentum in the market.
As of now, the current reading for price strength is at 65.29, indicating that there is still some room for further growth. It is worth mentioning that there is a potential target for the bulls at a ceiling of 70.00, which could be achieved if the current trend persists.
Additionally, the 10-day moving average (which is represented by the red line on the chart) has shifted course and is now trending upwards. It appears to be approaching a possible upward cross with its 25-day counterpart (represented by the blue line). Should this cross occur, it would signal a strong bullish trend and could potentially push BTC above $26,000 before the end of the weekend.
Bitcoins Trades below 24,500
At the moment, Bitcoin is experiencing a dip in price and is currently trading below both $24,500 and the 100 hourly simple moving average. However, there are indications that the cryptocurrency may be slowly correcting itself and is now trading above the 23.6% Fibonacci retracement level of the recent decline, which occurred between the $25,190 swing high and the $23,867 low.
Looking ahead, there is potential for an upward trend in price, but there are also some immediate obstacles to overcome. One such obstacle is an immediate resistance level near $24,550, which coincides with the 100-hourly simple moving average. Additionally, this resistance level is also near the 50% Fibonacci retracement level of the recent decline from the $25,190 swing high to the $23,867 low
There is a significant obstacle ahead at the $25,000 mark, and breaching it could push the price up to the $25,200 resistance area. If the price manages to close above $25,200, it could signal the start of another notable upswing. In such an event, the price could potentially climb to the $25,800 level, with the subsequent hurdle expected to lie around $26,200
Are there additional losses in BTC?
Should the bitcoin price not surpass the $24,550 resistance, it may continue to decline. A support level located near the $24,000 region will provide immediate downside support. The subsequent significant support level is located near the $23,850 area.
Should there be a downward break, the price may fall toward $23,500. Below this level, the next major support lies near the $23,380 mark, and if that level is breached, the price may further drop toward the $22,900 support level.
It seems that the current market conditions are favorable for bullish traders, and there is potential for further growth in the short term. However, as with all forms of trading, there is always some degree of uncertainty, and investors need to keep a close eye on market trends and indicators to make informed decisions.
Ken Emmanuel is a Blockchain Content writer, a Web3 Enthusiast and a Social Media Management Strategist, he likes writing educative contents to help people gain more knowledge and get inspired. The growth of any organization he work with is always his priority. He is a Geographer by profession and loves reading.