• Bitcoin’s recent rally has improved the overall sentiment among market participants, spurring a positive momentum across the industry.
• Technical analysis shows that the $25K price region has been the most significant barrier in Bitcoin’s path during the last eight months.
• The 4-hour chart shows that the price began a slight bearish leg after being rejected from the $25K substantial resistance region and grabbed sell-stop orders below the $22.3K minor support level.
Bitcoin Rally Spurs Positive Momentum
Bitcoin’s recent rally has improved the overall sentiment among market participants, spurring a positive momentum across the industry as signs of a bull market start popping.
Daily Chart Analysis
The $25K price region has been the most significant barrier in Bitcoin’s path during the last eight months. Most recently, the price attempted to surpass this level and failed, resulting in a consolidation correction stage. However, after an impulsive surge, a correction phase is essential for the continuation of the rally, which usually is simultaneous with formation of pullbacks. Hence, it can be assumed that recent plummet is part of this corrective phase to form a pullback to previously broken descending trendline while flushing out over-heated futures market positions and initiating another spike. Nevertheless, key supports at around $21K and 50 day moving average at around $20.3K could act as possible target levels for this decline.
4-Hour Chart Analysis
On 4 hour timeframe, it appears that after being rejected from $25K substantial resistance area, price began slight bearish leg while grabbing sell stop orders below minor support at around $22.3K level indicating further correction before continuation of bullish rally ahead.
In conclusion it appears that bulls are preparing another push higher following latest dip below $22K mark while forming necessary pullbacks on daily chart along with selling off minor resistances on 4 hour chart as seen above indicating possibility of further upside ahead despite current bearish pressure in short term .