Bitcoin Price Has Strong
Recently, the market has seen a strong correction due to the bull run in Bitcoin price over the past few days. On December 7, 2020, the price hit a low of $19,030.09, which is considered a new low.
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However, the appearance of a double bottom pattern has led to an optimistic view of this correction.
Bitcoin may bounce back, as is now clearer. Of course, there will be some challenges along the way. The current momentum of the Bitcoin price is one of the biggest challenges of the cryptocurrency.
Current momentum is just reversing past downward trends, so breaking the $25,000 price point may not be enough according to the latest analysis.
Bitcoin Price: The Known Resistance Level
The price of Bitcoin even reached $25,000 at the end of August, which is an important milestone. Such a pattern indicates that the current market has the potential and will likely try to break through resistance.
Bitcoin Price Has Strong Potential Chart: TradingView.com
Looking at the range over the past four hours, it looks like BTC will trade between $19,226 and $24,286 for now.
This challenge is due to traders’ pessimism in response to the most recent CPI report. The survey found an annual inflation rate of more than 8 percent.
This bleak assessment could be followed by a 1% rate hike. Therefore, the bulls must maintain their position in the $19,226 range to create momentum.
The prominent oscillator indicator has shown a bullish move. In contrast, the moving averages showed bearish indicators.
Sustainable momentum a must for Bitcoin
To push the price further, the bulls need to generate sustained momentum. Durability again reduces the chance of a dramatic correction.
The price of Bitcoin should not fall below the 71.60 Fibonacci level. If bears break through to the bottom, Bitcoin’s price could drop to $18,000.
This occurrence will further lower the price. Sustained momentum for a rally should be one of the bulls’ main goals to cross the $25,000 threshold.
However, given the current pessimism and panic in the market, it may take some time for BTC to reach 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