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.
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.
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