Bitcoin has recently encountered some resistance at the $27,500 zone, and after two days of consolidation, it has finally breached the $26,000 level. However, if Bitcoin remains below $25,200, there is a possibility of it dropping to $24,000 in the short term. Amidst persisting concerns regarding SEC lawsuits and the impending monetary policy decision by the Federal Reserve scheduled for next week, Bitcoin has experienced a significant sell-off.
This has resulted in the breaking of a crucial support level at $26,000, accompanied by high trading volumes. Yesterday, on the daily chart, Bitcoin formed a Doji pattern, signalling market uncertainty. In the morning, selling pressure intensified, causing the price to break below the $25,500 support level and reaching a low of $25,457.
The inability of BTC to maintain support at $25,200, as well as the downward movement outside of its lower channel, has further contributed to the negative market sentiment. Presently, Bitcoin is trading below the $26,500 level and the 100-hourly Simple Moving Average, reinforcing the prevailing bearish sentiment. At present, Bitcoin is facing notable resistance near the $25,800 level, which poses a significant barrier.
If there is a significant breakthrough above the resistance level of $26,200, it could initiate a substantial upward momentum. The subsequent critical resistance level to watch for is around $26,600. Beyond that, the next important resistance area emerges at approximately $27,000.
A decisive close above this level has the potential to drive the price even higher. Moreover, a clear breakthrough above this resistance may result in a surge towards the $27,500 resistance level. If BTC fails to overcome the resistance at $26,000, there exists a potential for additional downward movement.
The immediate support level to monitor on the downside is approximately $25,200. Following that, a significant support level can be identified around $25,000, and breaching this level could trigger a more rapid decline. In such a situation, there is a possibility that the price may decline towards the $24,000 support level in the short term.
If Bitcoin closes below $24,000, it could potentially pave the way for a further decline towards the next significant level around $20,000. Based on Price Analysis , the market capitalization of BTC stands at $495,118,720,510. The 24-hour trading volume is approximately $10,629,942,454.
KEY LEVELS : RESISTANCE LEVEL : $25,800-$26,200 SUPPORT LEVEL : $25,200-$24,800 Will Bitcoin regain its bullish momentum and surpass the $30,000 mark, propelling the market forward? The crucial factor for this to occur is the maintenance of the $25,200 support level. If BTC bulls can hold this level, it will increase the chances of initiating a full-fledged bull run. However, there remains uncertainty whether Bitcoin will retest the $25,200 level or continue its upward trajectory.
Feel free to share your views in the comment box below. Disclaimer: Crypto is not regulated and can offer considerable risks. There may be no regulatory remedies available in the event of any losses resulting from price analysis.
As a result, before engaging in any transactions involving crypto products, each investor must perform in-depth examination or seek independent advice. .