Bears rest, while bulls attempt to plan a $25,000 retest

Bears rest, while bulls attempt to plan a ,000 retest

  • Bitcoin price is showing a clean bounce from the $19,547 support area to $19,784.
  • Investors can expect BTC to trigger a retest of the $25,000 psychological level.
  • A daily candlestick close below the $18,500-$19,909 demand zone will invalidate the bullish theory.

Bitcoin price is showing resilience as it bounced off the August low, indicating willing buyers. On a lower time frame, BTC produced a bullish market structure shift which also confirms a possible reversal.

Bitcoin price ready to make hay

Bitcoin price pulled back from the 23% gains it saw between September 7th and 13th as it collapsed 15% between September 13th and 16th. The surprise move was triggered by the Consumer Price Index (CPI) announcement.

As a result, BTC set a swing high at $22,850 and fell to retest the 12-hour demand zone, which stretches from $18,500 to $19,909, which is one of the main reasons why a reversal here seems plausible.

Despite multiple attempts, sellers were unable to break the August low of $19,539, which indicates willing buyers. Going forward, investors can expect BTC investors to attempt a rally higher, which, after accumulating enough momentum, could produce a higher top above the recently formed top at $22,850.

If BTC can do the same, it could extend the period to retest $25,000, the midpoint of the 45% crash between May 31 and June 18.

BTC/USDT 1-Day Chart

BTC/USDT 1-Day Chart

While things are looking at Bitcoin price from a lower time frame perspective, the overall outlook still screams bearish. Hence, if the sellers come back and produce a daily candlestick closing below the 12-hour demand zone, extending from $18,500 to $19,909, this will create a lower bottom and invalidate the bullish hypothesis. This development could see BTC crash to $17,593, the swing low that formed on June 18.

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