The price of bitcoin (Bitcoin Pro is the ideal platform for trading BTC) met a heavy resistance at $25.000. Although he has tried several times to exceed this threshold and maintain it, he has failed on each occasion. Now traders are looking at support prices and possible short-term moves given the recent market behavior.
As analyst Lark Davis noted via Twitter, this is the third time in just seven days that bitcoin prices have rejected the breakout after hitting $25.200 per unit. It is therefore a “difficult area” for bullish traders, in Davis' words.
For the trader known as @CryptoTony_, rejecting this level is not yet a move to worry about further downside. In his opinion, a consolidation has taken place in a range between $23.400 and the $25.200 resistance level. As long as the price holds above this lower level, its outlook remains bullish, he added on Wednesday morning, Feb. 22.
A similar view is that of the CEO of trading platform Eight, Michaël van de Poppe. For him, this type of correction represents a buying opportunity because it precedes a new price increase.
However, he did say that he would expect a slightly lower price than the current one, below the $24.000 level at the time of writing. “I think I will wait a little lower in bitcoin to activate a long position,” she wrote.
Bearish position and declining trading volumes
Not everyone is bullish like the traders mentioned above. @GranMag0's position, for example, is bearish on recent BTC price movements. In fact, he had already predicted a possible break in the rising consolidation line in the previous days.
If that happens, he said on Tuesday, the cryptocurrency could move back into the $22.500-$23.200 per unit area. Already on Wednesday she shared a chart showing the expected breakout to the downside:
The analyst expects that, after confirming the “bearish broken accumulation model”, there will be a new attempt towards the ascending support line which, according to him, will turn into a new resistance. After that, the price will fall again, according to the trader.
In the past 24 hours, bitcoin trading volume has increased by more than 8% compared to the previous period, according to data from CoinMarketCap. This could suggest, along with the bearish movement, further downside force. However, most traders are expecting a prompt recovery towards the $25.000 resistance.
The price of bitcoin is up more than 40% so far this year. It hit its best price in over 6 months and pushed the cryptocurrency market past the $1.000 trillion cumulative market cap mark.