Bitcoin Price Has Strong Potential To Reach $25,000, Weekly Analysis Suggests

Bitcoin Price Has Strong Potential To Reach ,000, Weekly Analysis Suggests


Recently, the market witnessed a strong correction due to the bullish rally in the price of Bitcoin in the past several days. On December 7, 2020, the price reached a low of $1,030.09, which is a new all-time low.

However, the emergence of the double bottom pattern has led to an optimistic view of this correction.

Bitcoin can bounce, as is now evident. Obviously, there will be some challenges along the way. The current Bitcoin price momentum is one of the major challenges for the cryptocurrency.

The current momentum is just a reversal of the previous downtrends, and therefore it may not be enough to breach the $25,000 price level, according to the latest analysis.

Bitcoin Price: The Familiar Resistance Level

Bitcoin already reached $25,000 in late August, a significant achievement. This pattern indicates that the current market has the potential and is likely to try to break through the resistance.

Chart: TradingView.com

Looking at the range over the past four hours, it appears that BTC will be trading between $19,226 and $24,286 at the moment.

This challenge is attributed to traders’ pessimism about the latest CPI report. The survey revealed an annual inflation rate of over 8%.

This gloomy assessment could be followed by a 1% increase in interest rates. Therefore, the bulls must maintain their position within the $19,226 range to build momentum.

The prominent oscillator showed an upward progress. On the other hand, the moving averages showed bearish indicators.

Sustained Momentum Necessary for Bitcoin

To continue to push the price higher, the bulls must generate sustained momentum. Again, sustainability will reduce the likelihood of a dramatic correction.

Bitcoin price should not fall below the 71.60 Fibonacci level. If the bears break out to the downside, bitcoin price could drop to $18,000.

This repetition will lead to a lower price. Sustained bullish momentum should be one of the bulls’ main targets in order to cross the $25,000 threshold.

However, given the current pessimism and panic in the market, it may take some time before BTC reaches the $25,000 mark.

BTC total market cap at $384 billion on the 4-hour daily chart | Source: TradingView.com

Featured image from Business World IT, Chart: TradingView.com



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