Bitcoin (BTC) has a significant price target for bulls to meet — and it’s getting closer.
As noted By Philip Swift, co-founder of trading suite Decentrader, $25,000 is now a critical price level for BTC.
Bitcoin Price Rally Near “Too Much Liquidity”
After a 40 percent gain in January, bitcoin continued to strengthen around $23,000.
Opinion is divided on what’s next – after more than a year of a bear market, many market participants expect a dramatic correction and even new multi-year lows. $12,000 or worse.
Others believe that the good times may continue and even see BTC/USD. Reach $30,000. Before checking out his relief rally.
However, in the meantime, some are focused on another line in the sand that is much closer to the current spot price.
For the Swift, the area around $25,000 is now very important. This, he noted in a tweet on January 24, is where bears begin to die out in large numbers.
It is also the site of Bitcoin’s 200-week moving average (WMA), a key trendline that has been missing from the chart since mid-2022, when it failed to act as support. Since then, Bitcoin has been spent. A record amount of time Below the 200WMA, which is currently sitting around $24,750.
“There is a lot of liquidity around $24,700 – $25,900 which coincides with the 200WMA and the area just above it,” Swift commented.
A peer review Liquidity chart shows that leveraged short positions will begin to see liquidation after BTC/USD passes $23,400 — so far, this is where the rally has had momentum issues.
“This level continues to act as resistance,” trader and analyst Rekt Capital wrote In a comment section on the topic, noting that Bitcoin’s latest weekly close was also lower.
“BTC needs to reclaim this ~$23400 as support to move higher, otherwise it risks forming a new lower high against the summer 2022 highs.”
Such a scenario would mean that BTC/USD fails to break its local highs from August, in itself marking a brief respite from the 77% decline from the all-time highs seen in November 2021.
The August 2022 high stops the bulls.
Continuing, Rekt Capital drew attention to the fact that summer highs also present a resistance zone on a longer time frame.
Related: Bitcoin Price Stays Near $23K As Data Shows Hodlers Are Not Selling BTC
Analyzing the monthly chart in your latest YouTube updatehe stressed the need to break the resistance, which is still “affirming itself.”
“If this continues to happen, we can only lower ourselves to reconfirm this level as support,” he argued, referring to the monthly range reduction that Bitcoin FTX has made. lost due to the defeat of
A short-term forecast suggested that “some stabilization could take as long as it needs to before there is a break on either side of the range.”
Racket Capital added that a trip below the range low was not out of the question, however.
The views, opinions and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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