Bitcoin Loses $23K, Will Another Surge Come? (BTC Price Analysis)
• Bitcoin has struggled to break through the $25K resistance level, causing a possible correction before another rally.
• Technical analysis shows that there is a bearish divergence between the price and RSI indicator.
• There is a static support level at the $22.3K region, making it an important liquidity source for the next move.
Bitcoin Struggles to Break Through Resistance
The market has recently surged towards the significant resistance level of $25K, but failed to break through it. This rejection increases the likelihood of a short-term correction before another rally can occur.
Technical Analysis
On the daily timeframe, Bitcoin’s price was rejected after reaching near $24K-$25K region. Additionally, a prolonged bearish divergence between the price and RSI indicator further increases this possibility. However, BTC may retest the 200-day moving average and broken trendline before initiating another rally aiming for $25K.
On the 4-hour timeframe, BTC plummeted below the flag’s lower boundary and retested its trendline to complete its pullback pattern. There is also a static support level at around $22.3K which provides adequate liquidity for any upcoming moves in this region.
Bulls Aim for Rally
The bulls remain optimistic despite these technical indicators suggesting otherwise as they are still aiming for a breakout above $25K in order to initiate their next rally towards higher levels. This could be hindered by any further corrections or rejections from this significant resistance level however if successful it could result in substantial gains for Bitcoin holders due to its current volatility and market cap size relative to other cryptocurrencies.
Conclusion
At present, Bitcoin is struggling to push past its main psychological barrier of $25K which could lead to corrections or rejections before another surge can occurr accordingly with technical analysis pointing towards such possibilities traders should be cautious when entering positions and keep an eye out for any further developments with regard to breaking through this key resistance level inorder maximize their gains from potential rallies afterwards .
Disclaimer
This article does not constitute financial advice nor is it an endorsement of any particular asset or investment strategy; readers are encouraged to carefully consider their own investment objectives and seek professional advice where necessary prior to making any investments .
